Is UNITIL Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for UNITIL Corp. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company appears to be overvalued based on its current metrics. The P/E ratio stands at 18, while the EV to EBIT is 17.74 and the EV to EBITDA is 9.60, which are relatively high compared to peers such as Portland General Electric Co. with a P/E of 15.68 and Black Hills Corp. at 14.59.
In terms of peer comparison, UNITIL Corp. is positioned as expensive, while its competitors like PNM Resources, Inc. are classified as very expensive, highlighting that there are alternatives in the market that may offer better value. Furthermore, the stock has underperformed against the S&P 500 over the year, with a return of -18.03% compared to the index's 14.08%, reinforcing the notion that UNITIL Corp. may not be the best investment choice at this time.