Is RGC Resources, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for RGC Resources, Inc. moved from expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 16, while the EV to EBITDA ratio is 11.61, and the Price to Book Value is 1.81. In comparison, Excelerate Energy, Inc. has a P/E of 14.15 and an EV to EBITDA of 9.51, indicating that RGC Resources is positioned competitively within its peer group.
Despite its fair valuation, RGC Resources has underperformed against the S&P 500 over longer periods, with a 5-year return of -13.66% compared to the S&P's 87.83%. This suggests that while the stock may be fairly valued based on current metrics, its historical performance raises concerns about its growth potential relative to broader market trends.