Is Otter Tail Corp. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Otter Tail Corp. has moved from attractive to fair. This suggests that the company is currently fairly valued. Key valuation ratios include a P/E ratio of 11, an EV to EBITDA of 8.32, and a Price to Book Value of 1.88. In comparison to peers, Pinnacle West Capital Corp. is considered expensive with a P/E of 24.26, while Portland General Electric Co. is very attractive with a P/E of 15.68.
In terms of recent performance, Otter Tail Corp. has underperformed against the S&P 500 over the past year, returning 6.49% compared to the S&P 500's 17.14%. However, over the five-year period, it has significantly outperformed the index with a return of 131.07% versus the S&P 500's 96.61%. Overall, the current valuation metrics indicate that Otter Tail Corp. is fairly valued in the context of its peers.