Is DTE Energy Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for DTE Energy Co. has moved from very expensive to expensive, indicating a slight improvement but still suggesting that the stock is not attractively priced. Based on the current valuation metrics, DTE Energy appears to be overvalued, with a P/E ratio of 44, significantly higher than its peers, such as Exelon Corp. at 16.40 and Xcel Energy, Inc. at 20.15. Additionally, the EV to EBITDA ratio stands at 14.02, while the industry averages for similar companies are notably lower, reinforcing the overvaluation stance.
The company's return performance has been mixed compared to the S&P 500, with a year-to-date return of 17.56%, which outpaces the index's 13.30%, but over the longer term, such as the 3-year and 5-year returns, DTE Energy has lagged significantly behind the S&P 500, with returns of 32.66% and 39.84% compared to 81.19% and 91.29%, respectively. This underperformance, coupled with high valuation ratios, suggests that investors may want to exercise caution before investing in DTE Energy Co.