Based on the provided data, I'll analyze if PCG is overvalued through multiple valuation metrics and recent analyst perspectives.
Valuation Analysis: PCG's current valuation metrics show a P/E ratio of 15.41, EV/EBITDA of 12.10, P/S ratio of 1.70, and P/B ratio of 1.57 as of Q3 2024. These metrics have shown a slight upward trend throughout 2024, indicating gradually increasing valuations.
Analyst Consensus: Recent analyst actions suggest PCG is undervalued. UBS maintains a Strong Buy rating with a $22 target despite lowering it from $24. BMO Capital initiated coverage with a Buy rating and $21 target, citing premium visible growth potential and deep value opportunity. The consensus price target of $23.31 implies significant upside potential.
Growth Prospects: The company is projected to deliver consolidated earnings growth of 9.2% and rate base growth of 10%, which aligns with management's long-term guidance. This growth trajectory supports current valuation levels.
Market Performance: PCG stock has underperformed the broader market, declining 8.8% over the past 52 weeks while the S&P 500 gained 23.9%. This underperformance suggests potential undervaluation rather than overvaluation.
Based on these factors, PCG is not overvalued at current levels. The combination of reasonable valuation metrics, strong analyst support, solid growth prospects, and recent underperformance indicates the stock offers value at current prices.