Is MGE Energy, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for MGE Energy, Inc. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 25, an EV to EBITDA of 14.59, and a Price to Book Value of 2.56. In comparison to peers, Pinnacle West Capital Corp. has a P/E of 24.26, while OGE Energy Corp. shows a lower P/E of 17.83, indicating that MGE Energy is positioned competitively within its industry.
Despite the fair valuation, MGE Energy has underperformed relative to the S&P 500, with a year-to-date return of -10.62% compared to the index's 13.31%. This trend continues over one year, where MGE Energy's return of -7.41% falls short of the S&P 500's 16.64%.