Is Southwest Gas Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Southwest Gas Holdings, Inc. moved from expensive to very expensive. The company is currently overvalued based on its valuation ratios, which include a P/E ratio of 23, an EV to EBITDA of 10.02, and a Price to Book Value of 1.43. In comparison to its peers, New Jersey Resources Corp. has a significantly lower P/E ratio of 11.53, while ONE Gas, Inc. shows an EV to EBITDA of 10.34, indicating that Southwest Gas Holdings is trading at a premium relative to its industry counterparts.
Additionally, the stock has underperformed against the S&P 500 in recent periods, with a 1-year return of 4.59% compared to the S&P 500's 14.08%, and a 3-year return of 11.46% versus 81.19% for the index. This further supports the conclusion that Southwest Gas Holdings is overvalued in the current market environment.