Is Sempra overvalued or undervalued?

As of 10 October 2025, the valuation grade for Sempra has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Based on the current metrics, Sempra appears to be overvalued. The P/E ratio stands at 15, which is lower than the peer average of approximately 17.23, while the EV to EBITDA ratio of 15.83 is also above the industry average of 13.33 for The Southern Company. Additionally, the PEG ratio of 4.32 suggests that the stock is not priced attractively relative to its growth rate.
In comparison to its peers, NextEra Energy has a significantly higher P/E of 34.85, while Duke Energy Corp. has a P/E of 18.96, both indicating that Sempra's valuation is on the lower end of the spectrum. Notably, Sempra's one-year return of 10.91% lags behind the S&P 500's return of 13.36%, further supporting the notion that the stock may not be the best investment at its current price.