Is UNITIL Corp. overvalued or undervalued?

As of 6 May 2025, the valuation grade for UNITIL Corp. has moved from fair to expensive, indicating that the stock is overvalued. The company's P/E ratio stands at 18, while its EV to EBITDA ratio is 9.60 and the Price to Book Value is 1.61. Compared to peers, Portland General Electric Co. has a more attractive P/E of 15.68, and Black Hills Corp. is also expensive with a P/E of 14.59, suggesting that UNITIL Corp. is priced higher relative to some of its competitors.
The stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -15.46% compared to the S&P 500's 12.22%, and a one-year return of -26.50% against the index's 17.14%. This performance reinforces the conclusion that UNITIL Corp. is currently overvalued.