Is MetLife, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for MetLife, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 18, while the industry average is significantly higher at 24.36 for Progressive Corp., one of its peers. Additionally, MetLife's Price to Book Value is 2.94, and it has a PEG ratio of 0.18, which suggests that while the company may have growth potential, its current valuation does not reflect that adequately.
In comparison to its peers, MetLife's P/E ratio is lower than that of The Travelers Cos., Inc. at 47.55, which is categorized as fair, highlighting that MetLife is priced higher relative to its earnings. The company also shows a dividend yield of 204.59%, which is notably high, but this does not compensate for the overall expensive valuation. Recent stock performance indicates that while MetLife has outperformed the S&P 500 over the past year with a return of 11.73% compared to 10.26%, the long-term outlook suggests it may not sustain this momentum given its current overvaluation.