Is IDACORP, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for IDACORP, Inc. moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 21, which is lower than the peer average of 24.26 for Pinnacle West Capital Corp., but higher than OGE Energy Corp.'s 17.83. Additionally, the EV to EBITDA ratio is 13.64, while the peer average is significantly lower at 11.52 for Pinnacle West Capital Corp.
In terms of returns, IDACORP has outperformed the S&P 500 year-to-date with a return of 15.50% compared to the index's 13.31%. However, over the longer term, the company's 3-year return of 15.44% pales in comparison to the S&P 500's 70.89%, indicating that while it may have short-term gains, it has not kept pace with broader market performance. Overall, IDACORP's valuation metrics suggest it is currently overvalued relative to its peers and market performance.