Is Conifer Holdings, Inc. overvalued or undervalued?

As of 10 August 2022, the valuation grade for Conifer Holdings, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial position. The company is currently considered overvalued, primarily due to its negative earnings and poor performance metrics. The P/E ratio is not available as the company is loss-making, while the price to book value stands at 0.36, suggesting that the stock is trading at a discount to its book value. Additionally, the EV to EBIT ratio is 31.67, and the EV to EBITDA ratio is -22.01, both of which highlight the company's struggles in generating positive earnings.
In comparison to its peers, Conifer Holdings, Inc. shows stark contrasts. For instance, HCI Group, Inc. has a P/E ratio of 13.47 and an EV to EBITDA of 149.79, while Universal Insurance Holdings, Inc. has a P/E of 17.36. These figures illustrate that Conifer is not only underperforming but also facing significant challenges relative to its industry peers. Furthermore, the company's stock has underperformed against the S&P 500, with a year-to-date return of -34.19% compared to the index's 2.44%. This combination of factors reinforces the conclusion that Conifer Holdings, Inc. is overvalued in its current state.