Is Erie Indemnity Co. overvalued or undervalued?

As of 2 August 2024, Erie Indemnity Co. has moved from an expensive to a very expensive valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 41, a Price to Book Value of 12.35, and an EV to EBIT of 36.50, all of which are significantly higher than industry averages.
In comparison to its peers, Erie Indemnity's P/E ratio is notably higher than Berkshire Hathaway's fair valuation at 21.31 and Chubb Ltd.'s fair valuation at 17.74. The PEG ratio of 1.66 also suggests that the company's growth prospects do not justify its high valuation compared to its peers. Additionally, Erie Indemnity has underperformed against the S&P 500 with a year-to-date return of -13.43%, while the index has gained 2.44%. This further reinforces the conclusion that the company is overvalued.