Is UGI Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for UGI Corp. has moved from fair to expensive, indicating that the stock is overvalued. The company currently has a P/E ratio of 13, an EV to EBIT of 13.95, and an EV to EBITDA of 9.05, which suggests that it is trading at a premium compared to its peers. For instance, WESCO International, Inc. has a P/E of 20.94 and an EV to EBITDA of 13.40, while Pool Corp. is even higher at a P/E of 30.46 and an EV to EBITDA of 21.57.
In terms of recent performance, UGI Corp. has shown a YTD return of 14.81%, slightly outperforming the S&P 500's return of 13.30%. However, over the longer term, the stock has underperformed significantly, with a 3-year return of -1.76% compared to the S&P 500's 81.19%. This long-term underperformance, coupled with its current valuation metrics, reinforces the conclusion that UGI Corp. is overvalued.