Is HCI Group, Inc. overvalued or undervalued?

As of 7 November 2024, HCI Group, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 15, a Price to Book Value of 3.72, and a PEG Ratio of 1.68. In comparison to peers, Mercury General Corp. has a more attractive P/E of 11.03, while Palomar Holdings, Inc. shows a higher P/E of 21.54, indicating that HCI Group is positioned in the middle of its peer group.
Recent performance shows that HCI Group has significantly outperformed the S&P 500, with a year-to-date return of 58.96% compared to the S&P 500's 12.22%. This strong performance reinforces the notion that while the stock is fairly valued, it has been a strong performer in the market.