Is Kingstone Cos., Inc. overvalued or undervalued?

As of 12 August 2024, the valuation grade for Kingstone Cos., Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears undervalued, particularly when considering its P/E ratio of 11, which is significantly lower than the peer average of 17.88 for Crawford & Co. Additionally, Kingstone's EV to EBITDA ratio stands at 76.30, contrasting sharply with Crawford & Co.'s 4.11, suggesting that Kingstone may be undervalued relative to its earnings potential. The ROE of 25.77% further highlights the company's strong profitability compared to its peers.
In terms of recent performance, Kingstone has shown a remarkable 48.11% return over the past year, outpacing the S&P 500's 17.14%, which reinforces the notion of its attractive valuation. However, the company has faced challenges in the short term, with negative returns over the past week and month. Overall, the combination of a favorable valuation grade, competitive ratios, and strong historical performance suggests that Kingstone Cos., Inc. is currently undervalued in the market.