Is RGC Resources, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RGC Resources, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 16, an EV to EBITDA ratio of 11.61, and a Price to Book Value of 1.81. In comparison, Excelerate Energy, Inc. has a lower P/E ratio of 14.15 and a more favorable EV to EBITDA of 9.51, suggesting that RGC Resources is priced higher relative to its peers.
The stock has underperformed against the S&P 500 over various time frames, with a year-to-date return of 6.88% compared to the S&P 500's 13.30%, and a significant decline of 10.96% over the past five years, while the S&P 500 has gained 91.29%. This performance reinforces the notion that RGC Resources, Inc. is overvalued in the current market environment.