Is Edison International overvalued or undervalued?

As of 22 May 2025, Edison International's valuation grade has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 10, which is notably lower than its peer average. For comparison, Constellation Energy Corp. has a P/E of 26.62, while American Electric Power Co., Inc. stands at 19.35, highlighting the relative attractiveness of Edison International's valuation.
In addition to the P/E ratio, Edison International's EV to EBITDA stands at 8.91, which is competitive compared to the industry, where peers like Sempra and Dominion Energy, Inc. show higher multiples of 15.50 and 13.39, respectively. The company's ROE of 12.21% further supports the notion of it being undervalued, especially in light of its recent stock performance, which has lagged behind the S&P 500 over the past year, with a return of -29.98% compared to the index's 10.26%. This combination of strong ratios and favorable peer comparisons suggests that Edison International is indeed an attractive investment opportunity at its current price of 50.16.