Is NorthWestern Corp. overvalued or undervalued?

As of 4 September 2025, the valuation grade for NorthWestern Corp. has moved from expensive to very attractive, indicating a significant improvement in its perceived value. Based on the current metrics, the company appears to be undervalued. Key ratios include a P/E ratio of 14, a Price to Book Value of 1.11, and an EV to EBITDA of 10.82, all suggesting that the stock is trading at a discount compared to its peers.
In comparison to its peers, NorthWestern Corp. has a lower P/E ratio than Pinnacle West Capital Corp. at 24.26 and OGE Energy Corp. at 17.83, which are both classified as expensive. This further supports the conclusion that NorthWestern Corp. is undervalued relative to its industry. Additionally, the stock has underperformed against the S&P 500 over the past year, returning -0.18% compared to the S&P 500's 17.14%, but it has shown a positive return of 5.18% over the past three years, indicating potential for recovery.