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. The company appears to be fairly valued based on its current 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 that while the company is not undervalued, it is also not excessively priced compared to its peers.
In comparison to its peers, MGE Energy, Inc. has a P/E of 23.23, which is lower than Pinnacle West Capital Corp.'s P/E of 24.26 but higher than OGE Energy Corp.'s P/E of 17.83. Additionally, the EV to EBITDA ratio of 13.69 for MGE is more favorable than that of Pinnacle West, which stands at 11.52. Over the past year, MGE Energy has underperformed against the S&P 500, with a return of -8.33% compared to the index's 16.64%, reinforcing the notion that while the stock is fairly valued, it has not delivered competitive returns recently.