Is Sempra overvalued or undervalued?

As of 17 October 2025, the valuation grade for Sempra has moved from very expensive to expensive. Based on the current metrics, Sempra appears to be overvalued. The company has a P/E ratio of 15, which is lower than its peer average of approximately 17.23, and an EV to EBITDA ratio of 15.83, which is also higher than the industry average of around 16.42. Additionally, the PEG ratio stands at 4.32, indicating that the stock may not be growing at a rate that justifies its current price.
In comparison to its peers, Duke Energy Corp. has a P/E ratio of 18.96, while American Electric Power Co., Inc. is relatively fairly valued with a P/E of 16.05. Sempra's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 4.07% compared to the S&P 500's 13.30%, which further supports the notion that the stock is overvalued in the current market context.