Is Kestrel Group Ltd. overvalued or undervalued?

As of 15 March 2023, the valuation grade for Kestrel Group Ltd. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company appears to be overvalued, given its P/E ratio of -11.83 and an EV to EBITDA ratio of 117.95, which are significantly higher than typical industry standards. Additionally, the absence of a PEG ratio and a dividend yield further underscores the challenges in its valuation metrics.
When compared to peers, Kestrel Group Ltd. stands out unfavorably; for instance, its P/E ratio is notably negative, while the industry average is not provided, making it difficult to assess relative performance accurately. The stock has underperformed against the S&P 500, with a year-to-date return of -16.78% compared to the S&P 500's 12.22%, and over the past three years, it has declined by 35.78% against a substantial 70.41% gain for the index. This trend reinforces the notion that Kestrel Group Ltd. is overvalued in its current state.