Is Entergy Corp. overvalued or undervalued?

As of 17 October 2025, Entergy Corp. has moved from a very expensive to an expensive valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 34, a Price to Book Value of 2.67, and an EV to EBITDA of 13.27, all of which are significantly higher than its peers, such as Xcel Energy, Inc. with a P/E of 20.15 and Public Service Enterprise Group, Inc. with a P/E of 20.07, both classified as fairly valued.
In terms of recent performance, Entergy Corp. has outperformed the S&P 500 with a year-to-date return of 26.40% compared to 13.30% for the index, and a one-year return of 42.38% versus 14.08%. However, despite these positive returns, the high valuation ratios suggest that the stock may not be a good investment at its current price.