Is RGC Resources, Inc. overvalued or undervalued?

As of 10 February 2025, the valuation grade for RGC Resources, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 16, a Price to Book Value of 1.81, and an EV to EBITDA of 11.61, which are relatively high compared to its peers. For instance, Excelerate Energy, Inc. has a lower P/E of 14.15 and an EV to EBITDA of 9.51, suggesting that RGC Resources is priced at a premium.
In terms of performance, RGC Resources has shown a 1-week return of 1.68% and a year-to-date return of 13.46%, both outperforming the S&P 500's respective returns of 1.05% and 12.22%. However, the longer-term perspective reveals a concerning trend, with a 5-year return of -7.89% compared to the S&P 500's impressive 96.61%. This suggests that while the stock may have short-term momentum, its long-term valuation appears unsustainable at current levels.