Is ONE Gas, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ONE Gas, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 18, which is notably higher than peers like New Jersey Resources Corp. with a P/E of 11.53 and Spire Inc. at 15.53. Additionally, ONE Gas has an EV to EBITDA ratio of 10.31 and a PEG ratio of 18.12, further suggesting that the stock may be priced too high relative to its earnings growth potential.
In comparison to the broader market, ONE Gas has delivered a year-to-date return of 18.53%, outperforming the S&P 500's return of 13.30%. However, over the longer term, the company's performance has lagged significantly, with a 3-year return of 13.40% compared to the S&P 500's 81.19%. This disparity reinforces the notion that ONE Gas, Inc. is currently overvalued.