Is UGI Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for UGI Corp. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued, given its P/E ratio of 13, which is significantly lower than its peers such as Pool Corp. with a P/E of 30.46 and WESCO International, Inc. at 20.94. Additionally, UGI Corp.'s EV to EBITDA stands at 9.05, while its peer Core & Main, Inc. has a much higher ratio of 16.78, further suggesting that UGI is not as favorably valued in comparison to its industry counterparts.
In terms of performance, UGI Corp. has shown a year-to-date return of 18.42%, outperforming the S&P 500's return of 16.30%, but it has lagged significantly over longer periods, with a 3-year return of -5.38% compared to the S&P 500's 76.66%. This discrepancy highlights the challenges UGI faces in maintaining competitive returns relative to broader market benchmarks. Overall, the combination of valuation ratios and peer comparisons suggests that UGI Corp. is overvalued in the current market context.