Is Hamilton Insurance Group Ltd. overvalued or undervalued?

As of 26 February 2025, Hamilton Insurance Group Ltd. has moved from a very attractive to an attractive valuation grade. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 7, a Price to Book Value of 0.92, and an EV to Sales ratio of 0.61, which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to its peers, Hamilton Insurance Group Ltd. has a lower P/E ratio than the industry average of approximately 6.61, while its EV to EBITDA stands at 83.93, indicating a significant discrepancy in valuation. Notably, the company's PEG ratio of 0.04 further supports the undervaluation narrative. Additionally, over the past year, Hamilton Insurance Group has outperformed the S&P 500 with a return of 33.27% compared to the index's 10.26%, reinforcing the potential for further upside in its valuation.