Is DT Midstream, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for DT Midstream, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued based on its current metrics, including a P/E ratio of 29, an EV to EBITDA of 18.98, and a Price to Book Value of 2.37. In comparison, peers such as Western Midstream Partners LP and Plains All American Pipeline LP exhibit much lower P/E ratios of 11.04 and 9.78, respectively, reinforcing the notion that DT Midstream is priced at a premium.
Despite its strong stock performance, with a 1-year return of 39.36% compared to the S&P 500's 17.14%, the elevated valuation ratios suggest that the stock may not be a sustainable investment at its current price. Overall, DT Midstream, Inc. is considered overvalued in the context of its industry peers and valuation metrics.