Is Donegal Group, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Donegal Group, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 11, a price-to-book value of 1.28, and an impressive dividend yield of 1329.33%.
In comparison to peers, Donegal's P/E ratio of 10.48 is significantly lower than that of Skyward Specialty Insurance Group, Inc., which stands at 19.07, highlighting a relative undervaluation. Additionally, Donegal's PEG ratio of 0.01 further emphasizes its attractive valuation in contrast to the industry. Notably, Donegal has outperformed the S&P 500 with a year-to-date return of 26.57% compared to the index's 2.44%, reinforcing the case for its current undervaluation.