Is Xcel Energy, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Xcel Energy, Inc. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 20, an EV to EBITDA of 12.92, and a Price to Book Value of 2.00. In comparison to peers, NextEra Energy, Inc. has a significantly higher P/E ratio of 35.78, while The Southern Co. shows a P/E of 22.71, indicating that Xcel Energy is priced lower than some competitors but still reflects an expensive valuation.
Despite a recent stock return of 27.24% over the past year, which outperformed the S&P 500's 10.26%, the overall valuation metrics suggest that Xcel Energy, Inc. is not positioned favorably in the current market environment. The company's ROE stands at 10.02%, which, while respectable, does not justify the current price levels when compared to its peers.