Is UGI Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for UGI Corp. moved from very expensive to expensive, indicating a shift towards a less favorable valuation. Based on the current metrics, UGI Corp. appears to be overvalued. The company has a P/E ratio of 13, an EV to EBIT of 13.95, and an EV to EBITDA of 9.05, which are relatively high compared to its peers, such as Pool Corp. with a P/E of 30.46 and WESCO International, Inc. with a P/E of 20.94, suggesting that UGI Corp. is trading at a premium.
In terms of performance, UGI Corp. has shown a year-to-date return of 18.60%, outperforming the S&P 500's return of 16.30%, but over the longer term, it has underperformed significantly, with a 3-year return of -3.43% compared to the S&P 500's 76.66%. This mixed performance further supports the conclusion that UGI Corp. is overvalued in the current market context.