Is Essent Group Ltd. overvalued or undervalued?

As of 22 May 2025, the valuation grade for Essent Group Ltd. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 8, a Price to Book Value of 1.04, and a PEG ratio of 1.55. In comparison, Fidelity National Financial, Inc. has a P/E of 14.79, while Old Republic International Corp. stands at 11.67, indicating that Essent Group is trading at a significant discount relative to its peers.
Despite the recent changes in valuation, Essent Group has shown solid stock performance, with a year-to-date return of 12.23%, outperforming the S&P 500's 2.44% during the same period. Overall, while the company is fairly valued, its lower P/E and PEG ratios compared to peers suggest potential for growth if market conditions improve.