Is DT Midstream, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for DT Midstream, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, with a P/E ratio of 29, a Price to Book Value of 2.37, and an EV to EBITDA of 18.98, all of which are considerably higher than its peers. For instance, Western Midstream Partners LP has a P/E of 11.04 and an EV to EBITDA of 9.43, while Plains All American Pipeline LP shows a P/E of 9.78 and an EV to EBITDA of 8.11, highlighting DT Midstream's premium valuation.
Despite a strong one-year return of 26.35% compared to the S&P 500's 14.08%, the elevated valuation ratios suggest that the stock may not be justified at its current price level. The combination of high valuation metrics and the recent grade change reinforces the conclusion that DT Midstream, Inc. is overvalued in the current market environment.