Is Hagerty, Inc. overvalued or undervalued?

As of 7 May 2025, Hagerty, Inc. has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 128, an EV to EBITDA of 83.85, and a Price to Book Value of 13.73, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Hagerty's P/E ratio of 128 is significantly higher than Palomar Holdings, Inc. at 31.95 and Mercury General Corp. at 12.45, both of which are categorized as expensive or attractive. This stark difference highlights the overvaluation of Hagerty relative to its industry. Additionally, while the company has shown a positive return of 5.7% over the past week compared to a slight decline in the S&P 500, its longer-term performance has lagged behind the index, reinforcing the notion of overvaluation.