Is UNITIL Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for UNITIL Corp. has moved from very expensive to expensive, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics. Key valuation ratios include a P/E ratio of 18, an EV to EBIT of 17.74, and an EV to EBITDA of 9.60, which are relatively high compared to its peers. For instance, Portland General Electric Co. has a P/E of 15.68 and an EV to EBITDA of 10.09, while Black Hills Corp. shows a P/E of 14.59 and an EV to EBITDA of 10.75, suggesting that UNITIL is priced higher than some of its competitors.
In terms of stock performance, UNITIL Corp. has underperformed against the S&P 500 year-to-date, with a return of -9.47% compared to the S&P 500's 13.30%. Over the past year, the company has also lagged, returning -18.03% while the S&P 500 gained 14.08%. This further reinforces the notion that UNITIL Corp. is currently overvalued in the market.