Is PPL Corp. overvalued or undervalued?

As of 31 July 2025, the valuation grade for PPL Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently overvalued based on its valuation ratios, which include a P/E ratio of 25, an EV to EBITDA of 12.88, and a PEG ratio of 0.87. In comparison to peers, PPL Corp. has a higher P/E ratio than Xcel Energy, Inc. at 20.15 and Public Service Enterprise Group, Inc. at 20.07, both of which are rated as fair.
Additionally, PPL Corp.'s stock has underperformed relative to the S&P 500 over the past year, with a return of 10.67% compared to the index's 17.14%. This trend continues over longer periods, with PPL Corp. returning 32.76% over the last five years, significantly lower than the S&P 500's 96.61%. Overall, these metrics suggest that PPL Corp. is not only overvalued but also struggling to keep pace with broader market performance.