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 shift in perception regarding its valuation. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 26, which is higher than the industry average, and an EV to EBITDA ratio of 13.34, which also suggests a premium valuation compared to peers. Additionally, the PEG ratio stands at a notably low 0.23, indicating potential growth may not justify the current price.
In comparison to its peers, Constellation Energy Corp. has a higher P/E ratio than NextEra Energy, Inc. at 34.85 and The Southern Co. at 25.19, while also being more expensive than American Electric Power Co., Inc., which has a P/E of 16.05 and is considered fairly valued. Despite the high valuation, the company's stock has outperformed the S&P 500 significantly in recent periods, with a year-to-date return of 72.77% compared to the S&P 500's 13.30%. This strong performance may reflect investor optimism, but it does not alter the conclusion that the stock is currently overvalued.