Is Entergy Corp. overvalued or undervalued?

As of 30 July 2025, Entergy Corp. has moved from very expensive to expensive in valuation grade. The company appears to be overvalued, given its high P/E ratio of 34 compared to peers like Xcel Energy, Inc. with a P/E of 20.15 and Public Service Enterprise Group, Inc. at 20.07. Additionally, Entergy's EV to EBITDA ratio stands at 13.27, which is higher than the industry average, indicating a premium valuation.
In terms of returns, Entergy has outperformed the S&P 500 year-to-date with a return of 15.84% compared to the index's 12.22%. However, over the longer term, its 3-year return of 52.19% lags behind the S&P 500's 70.41%, suggesting that while it has had a strong recent performance, it may not be sustainable at its current valuation levels. Overall, the combination of high valuation ratios and mixed performance relative to peers and the broader market supports the conclusion that Entergy Corp. is overvalued.