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 is currently considered overvalued based on its financial 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 exceed the averages of its peers. For instance, Xcel Energy, Inc. has a P/E of 20.15 and Public Service Enterprise Group, Inc. has an EV to EBITDA of 15.62, indicating that Entergy is priced at a premium compared to these competitors.
In terms of recent performance, Entergy Corp. has outperformed the S&P 500 with a year-to-date return of 26.40% compared to the index's 13.30%. However, despite this strong performance, the valuation metrics suggest that the stock is not justified at its current price level.