Is CorVel Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for CorVel Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 102, significantly higher than the peer average of 79.07, while the EV to EBITDA ratio is 63.25, also above the industry norm. Additionally, the Price to Book Value is 30.04, which further underscores the premium at which the stock is trading compared to its peers.
In comparison to notable peers, Ryan Specialty Holdings, Inc. has a P/E ratio of 95.23 and an EV to EBITDA of 16.58, while Goosehead Insurance, Inc. shows a P/E of 93.96 and an EV to EBITDA of 37.50, both indicating that CorVel Corp. is trading at a higher valuation multiple. Furthermore, CorVel Corp.'s recent stock performance has lagged behind the S&P 500, with a year-to-date return of -25.43% compared to the index's 12.22%, reinforcing the notion that the stock may be overvalued given its current performance trajectory.