Is MGIC Investment Corp. overvalued or undervalued?

As of 8 August 2025, the valuation grade for MGIC Investment Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its valuation ratios, including a P/E ratio of 9, a Price to Book Value of 1.43, and a PEG Ratio of 0.54. In comparison to peers, CNA Financial Corp. has a P/E of 14.82, while Unum Group, which is rated attractive, has a P/E of 13.25, suggesting that MGIC Investment Corp. is trading at a lower valuation relative to some of its competitors.
Despite the recent downgrade in valuation, MGIC Investment Corp. has shown strong performance, with a year-to-date return of 20.20%, significantly outperforming the S&P 500's return of 12.22% over the same period. However, over the longer term, its 10-year return of 205.14% lags behind the S&P 500's 231.64%. Overall, MGIC Investment Corp. is fairly valued in the current market context.