Is Otter Tail Corp. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Otter Tail Corp. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 11, an EV to EBITDA of 8.32, and a dividend yield of 2.56%.
In comparison to peers, Otter Tail Corp. has a P/E ratio of 10.68, which is significantly lower than IDACORP, Inc. at 20.31 and PNM Resources, Inc. at 23.20, indicating that Otter Tail is trading at a discount relative to its peers. The company's return on equity (ROE) stands at 17.24%, which is competitive within the industry. Despite a recent one-week stock return of 2.40% compared to a slight decline in the S&P 500, the overall performance over the past year shows a decline of 9.46%, suggesting some challenges ahead.