Is PG&E Corp. overvalued or undervalued?

As of 13 May 2025, PG&E Corp. has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 16, a Price to Book Value of 1.36, and an EV to EBITDA ratio of 10.73. In comparison to its peers, PG&E Corp. has a lower P/E ratio than NextEra Energy, Inc. at 35.78 and The Southern Co. at 22.71, indicating that PG&E is more attractively priced relative to these competitors.
Despite the fair valuation, PG&E has faced significant stock performance challenges, with a year-to-date return of -31.57%, contrasting sharply with the S&P 500's 2.44% return. This underperformance over the past year, along with a relatively low ROE of 8.32% and ROCE of 5.22%, suggests that while the stock may be fairly valued, there are underlying operational concerns that investors should consider.