Is MGE Energy, Inc. overvalued or undervalued?

As of 17 October 2025, MGE Energy, Inc. has moved from an expensive to a fair valuation grade. 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 Price to Book Value of 2.56. Compared to peers, MGE Energy's P/E ratio of 23.23 is lower than Pinnacle West Capital Corp.'s 24.26, indicating a more attractive valuation, while OGE Energy Corp. shows a significantly lower P/E of 17.83, suggesting it may be undervalued relative to MGE.
In terms of stock performance, MGE Energy has underperformed against the S&P 500 in the year-to-date and one-year periods, with returns of -10.27% and -8.89%, respectively, compared to the S&P's 13.30% and 14.08%. However, over the three and five-year periods, it has shown positive returns of 29.05% and 24.63%, although these are still significantly lower than the S&P 500's 81.19% and 91.29% returns, respectively.