Is Employers Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Employers Holdings, Inc. moved from expensive to fair. The company appears fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 25, a Price to Book Value of 2.38, and an EV to Sales ratio of 2.83. In comparison, American Financial Group, Inc. has a P/E of 15.03, while RenaissanceRe Holdings Ltd. stands out with a much lower P/E of 6.29, indicating that Employers Holdings is relatively more expensive than some peers.
Despite the fair valuation, the stock has underperformed compared to the S&P 500, with a year-to-date return of -16.47% versus the index's 12.22%. Over the longer term, the 3-year return of 15.84% is significantly lower than the S&P 500's 70.41%, suggesting that while the valuation is fair, the stock may still face challenges in delivering competitive returns.