Is Sempra overvalued or undervalued?

As of 11 September 2025, the valuation grade for Sempra has moved from expensive to very expensive, indicating a significant shift in its perceived value. Based on the current metrics, Sempra appears to be overvalued. The P/E ratio stands at 15, while the industry average is not provided, suggesting a lack of competitive pricing. Additionally, the EV to EBITDA ratio is 15.83, and the PEG ratio is notably high at 4.32, further reinforcing the notion of overvaluation.
In comparison to its peers, Sempra's valuation is higher than that of American Electric Power Co., Inc., which has a P/E of 16.05 and is considered fair, and Duke Energy Corp., with a P/E of 18.96 and classified as expensive. Furthermore, Sempra's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -5.97% compared to the index's 12.22%, highlighting the disconnect between its valuation and market performance.