Is Essent Group Ltd. overvalued or undervalued?

As of 2 August 2024, the valuation grade for Essent Group Ltd. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 8, which is significantly lower than the peer average of approximately 8.98 for companies like Radian Group Inc. and Assured Guaranty Ltd. The Price to Book Value is 1.04, and the PEG Ratio is 1.55, indicating a reasonable growth expectation relative to its earnings.
In comparison to its peers, Old Republic International Corp. has a higher P/E of 11.21, while First American Financial Corp. is marked as very expensive with a P/E of 36.75. Despite a recent stock return of 1.87% over the past year, which underperformed the S&P 500's 17.14%, the year-to-date return of 20.28% surpasses the index's 12.22%, suggesting that the stock may have potential for further appreciation.