Is Edison International overvalued or undervalued?

As of 23 May 2025, the valuation grade for Edison International has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 10, which is significantly lower than its peers, such as Exelon Corp. at 16.40 and Xcel Energy, Inc. at 20.15. Additionally, Edison International's EV to EBITDA stands at 8.91, compared to Exelon's 10.87, further reinforcing its relative undervaluation.
Edison International's Price to Book Value is 1.24, which is favorable when compared to the industry average. The recent stock performance shows that Edison has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -30.39% compared to the S&P 500's 12.22%. This underperformance, coupled with its attractive valuation metrics, suggests that the stock may present a compelling buying opportunity.