Is Otter Tail Corp. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Otter Tail Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 11, an EV/EBITDA ratio of 8.32, and a Price to Book Value of 1.88. In comparison to peers, Otter Tail Corp. has a more favorable valuation, with Pinnacle West Capital Corp. showing a significantly higher P/E ratio of 24.26 and The AES Corp. at 25.28.
Despite recent underperformance relative to the S&P 500, with a 1Y return of 0.46% compared to 16.90% for the index, the attractive valuation metrics suggest potential for future growth. Overall, Otter Tail Corp. presents a compelling investment opportunity within the power industry.