Is MGE Energy, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for MGE Energy, Inc. has moved from expensive to fair. The company appears 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. In comparison, Pinnacle West Capital Corp. has a higher 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 peer group.
Despite its fair valuation, MGE Energy has underperformed against the S&P 500 over various periods, with a year-to-date return of -10.27% compared to the S&P 500's 13.30%. This trend continues in the one-year return, where MGE Energy is down 8.89% against the S&P 500's 14.08%.