Is CorVel Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CorVel Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the current metrics, the company appears undervalued, particularly when considering its P/E ratio of 102, which is significantly higher than the peer average of 79.07 for similar companies like Ryan Specialty Holdings, Inc. (P/E of 95.23) and Goosehead Insurance, Inc. (P/E of 93.96). Additionally, CorVel's EV to EBITDA ratio stands at 63.25, while the peer average is 49.08, further suggesting that the market may not fully recognize the company's potential.
Despite the attractive valuation grade, CorVel Corp. has struggled with returns, showing a year-to-date decline of 35.75%, compared to a positive return of 13.30% for the S&P 500. This underperformance over the past year, along with a 1-year return of -32.54%, highlights the disconnect between its valuation metrics and market performance, reinforcing the notion that the stock may be undervalued relative to its intrinsic worth.