Is Heritage Insurance Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Heritage Insurance Holdings, Inc. moved from attractive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 14, a PEG ratio of 0.23, and a return on equity (ROE) of 23.80%. In comparison to its peers, American Coastal Insurance Corp. has a lower P/E of 6.79, while Universal Insurance Holdings, Inc. has a higher P/E of 16.53, indicating that Heritage may be priced favorably relative to its industry.
The company's strong performance is further highlighted by its impressive returns, with a year-to-date return of 110.17% compared to the S&P 500's 12.22%, and a three-year return of 773.88% versus 70.41% for the index, reinforcing the narrative of its undervaluation.