Is Talen Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Talen Energy Corp. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company is currently considered overvalued based on its valuation ratios. The P/E ratio stands at 20, while the EV to EBITDA ratio is 8.76, and the EV to Sales ratio is 4.55, which are significantly higher than its peer, which has a P/E ratio of 239.09 and an EV to EBITDA of 10.29.
In comparison to its peers, Talen Energy Corp. appears less attractive, as evidenced by its elevated valuation ratios. The company's recent performance shows a remarkable year-to-date return of 101.74%, significantly outperforming the S&P 500's return of 13.30% over the same period, which may suggest that the stock's current price is not justified by its fundamentals.