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. This suggests that the company is overvalued, particularly when compared to its peers. Key ratios include a P/E ratio of 23, a Price to Book Value of 1.43, and an EV to EBITDA of 10.02, which indicate a premium valuation relative to the industry.
In comparison to its peers, Southwest Gas Holdings has a significantly higher P/E ratio than New Jersey Resources Corp. at 11.53 and ONE Gas, Inc. at 18.05, both of which are more attractively valued. Additionally, the company's ROCE of 6.40% and ROE of 6.33% do not justify its elevated valuation metrics. Over the past year, the stock has returned 4.59%, underperforming the S&P 500's return of 14.08%, reinforcing the notion that the stock is overvalued.