Is Atlantic American Corp. overvalued or undervalued?

As of 15 August 2025, the valuation grade for Atlantic American Corp. has moved from attractive to fair, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on its current metrics, particularly given its Price to Book Value of 0.38 and EV to Sales ratio of 0.20, which suggest limited growth potential compared to its peers. Additionally, the company has a negative ROE of -1.43%, further highlighting its struggles in generating returns for shareholders.
In comparison to its peers, Donegal Group, Inc. has a P/E ratio of 9.04 and an EV to EBITDA of 163.77, while SelectQuote, Inc. shows a more favorable P/E of 25.76 and an EV to EBITDA of 6.54, indicating that Atlantic American Corp. is lagging behind in terms of valuation metrics. Despite the company’s impressive year-to-date return of 122.73%, which significantly outperformed the S&P 500's 12.22% during the same period, the overall valuation metrics suggest that Atlantic American Corp. may not sustain this performance relative to its peers in the insurance industry.