Is MGIC Investment Corp. overvalued or undervalued?

As of 9 April 2025, the valuation grade for MGIC Investment Corp. has moved from very attractive to attractive. The company is currently fairly valued. Key ratios include a P/E ratio of 9, a Price to Book Value of 1.43, and a PEG ratio of 0.54, indicating a strong growth potential relative to its price.
In comparison to peers, Cincinnati Financial Corp. has a P/E of 19.43 and is rated fair, while Unum Group, also attractive, has a P/E of 13.72. These comparisons suggest that MGIC Investment Corp. is undervalued relative to its peers, particularly given its lower P/E ratio. Additionally, the company's stock has outperformed the S&P 500 over the past year, returning 29.55% compared to the index's 10.26%, reinforcing its attractive valuation profile.