Is WEC Energy Group, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for WEC Energy Group, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company is currently considered overvalued. Key ratios include a P/E ratio of 21, an EV to EBITDA of 14.46, and a PEG ratio of 20.90, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, WEC Energy's P/E ratio of 20.60 is higher than Duke Energy Corp.'s 18.26 and lower than Constellation Energy Corp.'s 26.62, placing it in a competitive yet expensive position within the industry. Additionally, its EV to EBITDA ratio of 14.32 is also on the higher side compared to peers like American Electric Power Co., Inc. at 12.49. While WEC Energy has shown strong returns over the past year, outperforming the S&P 500, the current valuation metrics suggest that investors may be paying too much for future growth potential.