Is MGE Energy, Inc. overvalued or undervalued?

As of 8 September 2025, MGE Energy, Inc. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 25, an EV to EBITDA of 14.59, and a PEG ratio of 4.50, which indicate a premium valuation relative to its earnings growth potential.
In comparison to peers, MGE Energy, Inc. has a higher P/E ratio than Pinnacle West Capital Corp. at 24.26 and OGE Energy Corp. at 17.83, both of which are also categorized as expensive. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -10.48% compared to the index's 12.22%, suggesting that the market may be reflecting concerns about its valuation relative to growth prospects.