Is Eversource Energy overvalued or undervalued?

As of 17 October 2025, Eversource Energy's valuation grade has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 29, a Price to Book Value of 1.63, and an EV to EBITDA ratio of 10.73. In comparison to peers, Exelon Corp. has a P/E of 16.40, and Xcel Energy, Inc. has a P/E of 20.15, indicating that Eversource Energy is trading at a premium relative to these competitors.
While Eversource has shown a strong return of 26.35% year-to-date compared to the S&P 500's 13.30%, its longer-term performance has lagged, particularly over the past three and five years, where it has returned -1.77% and -20.63%, respectively, against the S&P 500's significant gains. This mixed performance suggests that while the current valuation may be fair, the company faces challenges in sustaining growth relative to broader market trends.