Is Dominion Energy, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Dominion Energy, Inc. has moved from very expensive to expensive. The company is currently considered overvalued based on its key financial ratios. The P/E ratio stands at 19, while the industry average is significantly higher at 22.7 for peers like The Southern Company and 35.8 for NextEra Energy. Additionally, Dominion's EV to EBITDA ratio is 13.64, which is in line with the industry but does not justify its current price given the lower PEG ratio of 0.30.
In comparison to its peers, Dominion Energy's P/E ratio of 17.88 is lower than that of The Southern Company at 22.71 and Duke Energy at 18.26, indicating that it is priced at a premium despite its lower growth prospects. The company's recent stock performance has shown a 1-year return of 13.55%, outperforming the S&P 500's 10.26%, but this does not alleviate concerns about its valuation metrics. Overall, Dominion Energy appears to be overvalued relative to its peers and fundamental ratios.