Is Conifer Holdings, Inc. overvalued or undervalued?

As of 10 August 2022, the valuation grade for Conifer Holdings, Inc. changed from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly given its negative P/E ratio and a Price to Book Value of just 0.36, which suggests that the market is not valuing its assets appropriately. Additionally, the EV to EBIT ratio stands at 31.67, indicating a high valuation relative to earnings before interest and taxes, while the EV to EBITDA ratio is negative at -22.01, further highlighting the company's struggles.
In comparison to its peers, Conifer Holdings shows significant underperformance, with Heritage Insurance Holdings, Inc. boasting a P/E ratio of 9.55 and a fair valuation, while Universal Insurance Holdings, Inc. has a P/E of 16.53, indicating a more favorable market perception. The recent stock performance of Conifer Holdings, with a 1-month return of 134.68% compared to the S&P 500's 2.33%, may seem impressive, but this is overshadowed by its long-term underperformance, as evidenced by a 5-year return of -32.63% against the S&P 500's 96.61%.