Is James River Group Holdings Ltd. overvalued or undervalued?

As of 3 March 2025, the valuation grade for James River Group Holdings Ltd. has moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued, particularly given its Price to Book Value of 0.44 and an EV to Sales ratio of 0.28, which suggest that the market is not pricing in the company's potential effectively. Additionally, its EV to EBITDA ratio stands at a staggering 189.26, further highlighting the disconnect between its market valuation and operational performance.
In comparison to its peers, James River Group Holdings Ltd. has a significantly negative P/E ratio of -2.8992 and an EV to EBITDA ratio of 185.1787, which are both indicative of its struggles relative to the industry. Notably, while the company has a dividend yield of 3.32%, its ROE is at -12.31%, reflecting poor profitability. Over the past year, the stock has underperformed the S&P 500, with a return of -17.38% compared to the index's 17.14%, reinforcing the notion that the company is currently overvalued.