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 in perceived value but still suggesting overvaluation. The company is currently considered overvalued based on its high P/E ratio of 44, which significantly exceeds the industry average, and an EV to EBITDA ratio of 14.02, which is also elevated compared to peers. Additionally, the Price to Book Value stands at 2.33, further reinforcing the notion of overvaluation.
In comparison to its peers, DTE Energy Co. has a notably higher P/E ratio than Exelon Corp. at 16.40 and Xcel Energy, Inc. at 20.15, both of which are rated as fair. Furthermore, the company's return performance has lagged behind the S&P 500 over the longer term, with a 3-year return of 32.66% compared to the S&P 500's 81.19%, indicating that while it has shown some short-term strength, it has not kept pace with broader market returns over the longer horizon.