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 is currently overvalued, with a P/E ratio of 29, a price-to-book value of 2.37, and an EV to EBITDA ratio of 18.98. In comparison, peers such as Western Midstream Partners LP and Plains All American Pipeline LP have much lower P/E ratios of 11.04 and 9.78, respectively, highlighting the premium at which DT Midstream is trading.
Despite a strong one-year return of 26.35%, which outperformed 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 company's ROCE of 6.45% and ROE of 8.16% further indicate that while it has delivered positive returns, the high valuation metrics raise concerns about sustainability and future growth potential.