Is Eversource Energy overvalued or undervalued?

Jun 25 2025 08:29 AM IST
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As of June 16, 2025, Eversource Energy is considered overvalued with a valuation grade of "expensive," highlighted by a P/E ratio of 29, an EV to EBITDA of 10.73, and a Price to Book Value of 1.63, while its 3-year return of -22.81% significantly lags behind the S&P 500's 58.74%, despite offering a dividend yield of 4.10%.
As of 16 June 2025, Eversource Energy's valuation grade has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 29, an EV to EBITDA of 10.73, and a Price to Book Value of 1.63, which suggest that the stock is trading at a premium compared to its earnings and asset value.

In comparison to peers, Eversource Energy's P/E ratio of 28.42 is higher than the industry average, while its EV to EBITDA ratio of 10.56 also reflects a premium valuation. Notably, the company has a dividend yield of 4.10%, which may attract income-focused investors despite the overall high valuation. Recent stock performance shows that Eversource has lagged behind the S&P 500 over longer periods, with a 3-year return of -22.81% compared to the S&P's 58.74%, reinforcing the notion that the stock may be overvalued in the current market environment.
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