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, a Price to Book Value of 2.56, and an EV to EBITDA of 14.59, which suggest that while the company is not undervalued, it is also not excessively priced compared to its peers.
In comparison to its peers, MGE Energy's P/E ratio of 23.23 is lower than Pinnacle West Capital Corp.'s 24.26, but higher than OGE Energy Corp.'s 17.83, indicating a competitive positioning within the industry. Notably, MGE Energy's PEG ratio of 4.50 suggests that growth expectations may be high relative to its earnings, which could be a concern for some investors. Over the past year, MGE Energy has underperformed the S&P 500, returning -8.89% compared to the index's 14.08%, reinforcing the notion that while the stock is fairly valued, it may face challenges in generating returns in the near term.