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, an EV to EBITDA of 13.27, and a Price to Book Value of 2.67. In comparison, peers such as Xcel Energy, Inc. and Public Service Enterprise Group, Inc. have P/E ratios of 20.15 and 20.07, respectively, indicating that Entergy Corp. is trading at a significant premium relative to its peers.
Despite a strong year-to-date return of 26.40% compared to the S&P 500's 13.30%, the overall valuation metrics suggest that Entergy Corp. is not justified at its current price level. The high valuation ratios alongside the recent downgrade in grade indicate that investors may be overestimating the company's future growth potential.