Is Atlantic American Corp. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Atlantic American Corp. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, particularly given its low Price to Book Value of 0.38 and EV to Sales ratio of 0.20, which suggest that the market may not be fully recognizing its asset value. Additionally, the company’s EV to EBITDA stands at 39.03, which, while high, must be contextualized within its current financial performance.
In comparison to its peers, Donegal Group, Inc. has a P/E ratio of 9.04, while SelectQuote, Inc. shows a P/E of 25.76, highlighting that Atlantic American Corp. is trading at a significant discount relative to these companies. Despite recent stock performance showing a decline of 15.94% over the past week compared to a slight drop of 0.31% in the S&P 500, the year-to-date return of 88.31% indicates strong recovery potential, reinforcing the notion that the stock may be undervalued.