Is Maiden Holdings Ltd. overvalued or undervalued?

As of 15 March 2023, the valuation grade for Maiden Holdings Ltd. has moved from attractive to risky, indicating a significant shift in the company's perceived value. The company is currently overvalued, especially given its troubling financial metrics. Notably, the Price to Book Value stands at 4.98, while the EV to EBITDA ratio is 21.42, and the ROE is an alarming -561.77%. These figures suggest that the company is struggling to generate returns for its shareholders.
In comparison to its peers, Maiden Holdings Ltd. shows a stark contrast; for instance, HCI Group, Inc. has a P/E ratio of 13.47 and is rated fair, while Lemonade, Inc. has a much worse P/E of -12.77, also rated risky. This peer comparison highlights the challenges faced by Maiden Holdings Ltd. in a competitive landscape. Furthermore, the company's recent stock performance has been dismal, with a year-to-date return of -27.19%, significantly underperforming the S&P 500, which has returned 2.44% in the same period.