Is Southwest Gas Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Southwest Gas Holdings, Inc. has moved from expensive to very expensive. The company is overvalued based on its current metrics. Key ratios include a P/E ratio of 23, an EV to EBITDA of 10.02, and a Price to Book Value of 1.43, which suggest that the stock is trading at a premium compared to its peers.
In comparison to its peers, New Jersey Resources Corp. has a significantly lower P/E ratio of 11.53 and a PEG ratio of 0.1294, indicating it is more attractively valued. Additionally, ONE Gas, Inc. has an EV to EBITDA of 10.34, which is also more favorable than Southwest Gas Holdings. The company's recent stock performance has lagged behind the S&P 500, with a 1-year return of 4.59% compared to the S&P 500's 14.08%, reinforcing the notion of overvaluation.