Is NorthWestern Energy Group, Inc. overvalued or undervalued?

As of 4 September 2025, the valuation grade for NorthWestern Energy Group, Inc. has moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 16.26, an EV/EBITDA ratio of 11.71, and a PEG ratio of 2.10. In comparison, its peers in the power industry exhibit varying valuations, with one notable competitor having a P/E ratio that suggests a higher valuation than NorthWestern.
Despite the positive valuation metrics, NorthWestern has underperformed relative to the S&P 500 over multiple periods, with a year-to-date return of 5.57% compared to the S&P 500's 12.22%, and a 1-year return of -0.18% against the S&P 500's 17.14%. This performance may suggest that while the company is undervalued based on its financial ratios, market sentiment may not yet fully reflect this potential.