Is Eversource Energy overvalued or undervalued?

As of 31 July 2025, the valuation grade for Eversource Energy has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. 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. In comparison with peers, Exelon Corp. has a P/E of 16.40, while Xcel Energy, Inc. shows a P/E of 20.15, indicating that Eversource Energy's valuation is higher than some peers but aligns with others in the industry.
Despite the fair valuation, Eversource Energy's recent stock performance has lagged behind the S&P 500, with a 1-year return of -5.35% compared to the index's 17.14%. This underperformance over multiple periods, including a 3-year return of -28.06% versus the S&P 500's 70.41%, suggests that while the stock may be fairly valued, it has not delivered competitive returns to investors recently.