Is NI Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for NI Holdings, Inc. has moved from expensive to very expensive. This indicates that the company is overvalued. Key valuation ratios include a P/E ratio of 36, a Price to Book Value of 1.14, and an EV to Sales ratio of 0.69. In comparison, Donegal Group, Inc. has a P/E ratio of 9.04, which highlights the significant premium at which NI Holdings is trading relative to its peers.
The stock has shown mixed performance against the S&P 500, with a 1-week return of 4.27% compared to 1.05% for the index, but it has underperformed over longer periods, including a year-to-date return of -9.81% versus 12.22% for the S&P 500. This underperformance reinforces the notion that NI Holdings, Inc. is overvalued in the current market context.