Is ONEOK, Inc. overvalued or undervalued?

As of 4 October 2024, the valuation grade for ONEOK, Inc. has moved from very attractive to very expensive. This indicates that the company is currently overvalued. The P/E ratio stands at 16, while the industry average P/E is significantly higher at 27.64 for The Williams Cos., Inc. and 21.96 for Kinder Morgan, Inc. The EV to EBITDA ratio is 13.10, which is also higher than the attractive valuations seen in peers like Enterprise Products Partners LP at 11.01 and MPLX LP at 12.33.
In terms of performance, ONEOK's dividend yield is exceptionally high at 338.60%, and it has a ROE of 15.20%. However, the stock has underperformed relative to the S&P 500, with a year-to-date return of -20.47% compared to the S&P's 2.44%. Overall, ONEOK appears to be overvalued based on its current financial metrics and peer comparisons.