Is Donegal Group, Inc. overvalued or undervalued?

As of 2 September 2025, the valuation grade for Donegal Group, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 11, a Price to Book Value of 1.28, and an impressive PEG Ratio of 0.01, indicating strong growth potential relative to its price.
In comparison to peers, Donegal Group's P/E ratio of 11 is higher than James River Group Holdings Ltd., which has a P/E ratio of -2.89, suggesting that Donegal is in a better position despite its fair valuation. The EV to EBITDA ratio for Donegal is 161.35, while its peer's ratio stands at 185.18, indicating a more favorable valuation in terms of earnings before interest, taxes, depreciation, and amortization. Notably, Donegal Group has outperformed the S&P 500 with a year-to-date return of 26.12% compared to the index's 12.22%, reinforcing its relative strength in the market.