Is Talen Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Talen Energy Corp. moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios. The P/E ratio stands at 20, while the EV to EBITDA ratio is 8.76, and the Price to Book Value is 10.07, all of which suggest a premium relative to typical industry metrics.
In comparison to its peers, Talen Energy Corp. has a significantly higher P/E ratio of 239.09, indicating a stark divergence from the industry average. Notably, the company’s return on equity (ROE) is an impressive 49.15%, but this does not sufficiently justify its elevated valuation. Over the past year, Talen Energy Corp. has returned 136.75%, significantly outperforming the S&P 500's 14.08%, which may further complicate its valuation narrative.