Is HCI Group, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for HCI Group, Inc. has moved from expensive to fair, indicating a reassessment of its market position. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 15, a Price to Book Value of 3.72, and an ROE of 25.26%.
In comparison to its peers, HCI Group's P/E ratio is more favorable than Lemonade, Inc. at -12.77 and significantly lower than Safety Insurance Group, Inc. at 19.04. The EV to EBITDA ratio for HCI Group is notably high at 183.67, which may raise concerns about its valuation relative to earnings potential. Despite recent stock performance showing a year-to-date return of 28.23% compared to the S&P 500's 2.44%, the current valuation suggests that HCI Group is positioned fairly within its market context.