Is Dominion Energy, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Dominion Energy, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears overvalued based on its current financial metrics, with a P/E ratio of 19, an EV to EBITDA ratio of 13.64, and a PEG ratio of 0.30. In comparison, peers such as Duke Energy Corp. have a P/E of 18.96 and American Electric Power Co., Inc. shows a more favorable P/E of 16.05, suggesting that Dominion's valuation may not be justified relative to its competitors.
Additionally, Dominion's recent stock performance has lagged behind the S&P 500, with a 1-year return of 4.06% compared to the S&P 500's 17.14%. This underperformance further supports the notion that the stock may be overvalued in the current market environment.