Is FirstEnergy Corp. overvalued or undervalued?

As of 28 November 2025, the valuation grade for FirstEnergy Corp. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 18, an EV to EBITDA of 11.87, and a Price to Book Value of 1.87. In comparison to peers, FirstEnergy's P/E ratio is lower than Xcel Energy's 20.15 and Public Service Enterprise Group's 20.07, indicating a more attractive valuation relative to these companies.
While FirstEnergy has shown a 19.96% return year-to-date, it has underperformed the S&P 500, which returned 16.45% in the same period. This performance, along with its fair valuation, suggests that the stock may be a reasonable investment opportunity within the current market context.