Is Fidelis Insurance Holdings Ltd. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Fidelis Insurance Holdings Ltd. has moved from expensive to risky, indicating a deteriorating outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.80 and an EV to Sales ratio of 0.53, which are both low compared to industry norms. Additionally, the negative EV to EBITDA of -87.26 and a ROE of -0.44% further underscore the challenges the company faces.
In comparison to its peers, Fidelis Insurance Holdings Ltd. has a significantly lower EV to EBITDA ratio than Assurant, Inc. at 49.0468 and Kinsale Capital Group, Inc. at 1766.1332, both of which are in a better valuation position. The recent stock performance shows that while Fidelis gained 1.95% over the past week and 4.41% over the past month, it has underperformed the S&P 500 year-to-date and over the past year, with returns of -2.04% and -0.89%, respectively. This performance further supports the conclusion that the stock is overvalued in its current state.