Is FirstEnergy Corp. overvalued or undervalued?

As of 30 July 2025, FirstEnergy Corp. moved from very expensive to fair, indicating a shift in its valuation perspective. The company is currently fairly valued, with a P/E ratio of 18, an EV to EBITDA of 11.87, and a PEG ratio of 1.51. In comparison to peers, Xcel Energy, Inc. has a P/E of 20.15, while Public Service Enterprise Group, Inc. has a P/E of 20.07, suggesting that FirstEnergy is positioned competitively within its industry.
Despite its fair valuation, FirstEnergy's recent stock performance has lagged behind the S&P 500, with a 1-year return of -0.14% compared to the index's 17.14%. Over the longer term, the 5-year return of 49.97% also trails the S&P 500's 96.61%, highlighting potential concerns regarding growth relative to broader market trends.