Is Sempra overvalued or undervalued?

As of 17 October 2025, the valuation grade for Sempra has moved from very expensive to expensive, indicating a slight shift in perception but still suggesting that the stock is on the higher end of its valuation spectrum. Based on the current metrics, Sempra appears to be overvalued, particularly in light of its P/E ratio of 15, which is lower than the peer average of approximately 17.23, and an EV to EBITDA ratio of 15.83, which also exceeds the industry norm.
In comparison to its peers, NextEra Energy has a significantly higher P/E ratio of 34.85, while The Southern Company stands at 25.19, both indicating that Sempra's valuation may not be justified given its lower growth prospects reflected in a PEG ratio of 4.32. Furthermore, Sempra's return performance has lagged behind the S&P 500, with a year-to-date return of 4.07% compared to 13.30% for the index, and a three-year return of -36.98% versus 81.19% for the S&P 500, reinforcing the notion that the stock may not be a compelling investment at its current price.