Is Xcel Energy, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Xcel Energy, Inc. moved from very expensive to fair. Based on the current metrics, the company appears fairly valued. 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, peers such as Exelon Corp. have a P/E of 16.40 and Consolidated Edison, Inc. has a P/E of 19.16, indicating that Xcel Energy is competitively priced within its industry.
In terms of recent performance, Xcel Energy's year-to-date return of 6.89% lags behind the S&P 500's return of 12.22%, and over the past three years, it has significantly underperformed with a return of -2.34% compared to the S&P 500's 70.41%. This performance suggests that while the stock is fairly valued, it may face challenges in delivering returns that match broader market indices.