Is Genie Energy Ltd. overvalued or undervalued?

As of 28 May 2025, the valuation grade for Genie Energy Ltd. has moved from fair to expensive. The company is currently considered overvalued based on its high P/E ratio of 43, which significantly exceeds the industry average. Additionally, the EV to EBITDA ratio stands at 44.54, further indicating a premium valuation compared to its peers. The return on equity (ROE) is reported at 7.71%, which is relatively low given the high valuation metrics.
In comparison to its peers, Genie Energy Ltd. has a P/E ratio that is notably higher than Kenon Holdings Ltd., which has a P/E of 26.98, and Hawaiian Electric Industries, Inc., which is currently classified as risky with a negative P/E. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 71.78% compared to the S&P 500's 2.44%, but this strong performance does not justify its current valuation levels.