Is Horace Mann Educators Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Horace Mann Educators Corp. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 25, which is significantly higher than peers like Kemper Corp. at 10.70 and Mercury General Corp. at 12.45, suggesting that Horace Mann is trading at a premium compared to its competitors. Additionally, the EV to EBITDA ratio is exceptionally high at 118.37, further reinforcing the overvaluation narrative.
With a PEG ratio of 0.33, the company appears to be undervalued in terms of growth potential, but this is overshadowed by its high valuation metrics. The dividend yield of 1.94% and ROE of 8.53% do not sufficiently justify the elevated price levels. Given these factors, Horace Mann Educators Corp. is assessed as overvalued, especially in light of its recent stock performance compared to the S&P 500, where it has outperformed in the short term but lags significantly over longer periods.