Is MBIA, Inc. overvalued or undervalued?

As of 27 February 2025, the valuation grade for MBIA, Inc. has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is currently considered overvalued, primarily due to its negative price-to-book value of -0.58 and an EV to capital employed ratio of 5.14, which suggests inefficiency in utilizing its capital. Additionally, the P/E ratio is not applicable as the company is loss-making, further complicating its valuation.
In comparison to its peers, Radian Group Inc. has a P/E ratio of 8.44 and Assured Guaranty Ltd. stands at 8.69, both indicating more favorable valuations in the sector. The stark contrast in performance is evident as MBIA's stock has underperformed significantly, with a year-to-date return of -32.35%, compared to a modest 2.44% return for the S&P 500. This underperformance reinforces the conclusion that MBIA, Inc. is currently overvalued in the market.