Is NI Holdings, Inc. overvalued or undervalued?

As of 9 May 2025, the valuation grade for NI Holdings, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 36, significantly higher than the industry average of approximately 19.07 for Skyward Specialty Insurance Group, which also has a lower EV/EBITDA ratio of 1021.49 compared to NI's 222.26. Additionally, the company's ROE is only 3.15%, further highlighting its underperformance relative to peers.
In comparison to its peers, Donegal Group, Inc. appears attractive with a P/E of 10.48 and an EV/EBITDA of 157.20, reinforcing the notion that NI Holdings, Inc. is overvalued. The stock has underperformed against the S&P 500 over various time frames, including a year-to-date decline of 18.03% compared to a 2.44% gain for the index. Overall, the evidence suggests that NI Holdings, Inc. is overvalued in the current market environment.