Is New Jersey Resources Corp. overvalued or undervalued?

As of 3 April 2025, the valuation grade for New Jersey Resources Corp. has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a P/E ratio of 11, an EV to EBITDA of 10.62, and a PEG ratio of 0.14, which suggests strong growth potential relative to its price.
When compared to peers, New Jersey Resources Corp. has a lower P/E ratio than Southwest Gas Holdings, Inc. at 23.43 and ONE Gas, Inc. at 17.71, both of which are considered expensive. The company's dividend yield stands at 3.05%, which is appealing in the current market. Despite a recent underperformance compared to the S&P 500 over the last year, where it returned 7.63% versus the index's 10.26%, the overall valuation metrics suggest that New Jersey Resources Corp. remains a solid investment in its sector.