Is Constellation Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Constellation Energy Corp. has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 26, the Price to Book Value is 7.23, and the EV to EBITDA is 13.34, all of which are higher than many of its peers.
In comparison, NextEra Energy, Inc. has a P/E of 34.85 and an EV to EBITDA of 17.71, while The Southern Co. shows a P/E of 25.19 and an EV to EBITDA of 13.33. These figures suggest that Constellation Energy Corp. is relatively more expensive than some peers, despite its strong ROCE of 25.06% and ROE of 27.78%. Notably, Constellation has outperformed the S&P 500 significantly, with a year-to-date return of 72.77% compared to the S&P 500's 13.30%, reinforcing the notion that while the stock is currently overvalued, it has been rewarded by the market.