Is NMI Holdings, Inc. overvalued or undervalued?

As of 28 May 2025, the valuation grade for NMI Holdings, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 8, which is significantly lower than its peer Kemper Corp., which has a P/E of 10.70. Additionally, NMI's PEG ratio stands at 0.51, suggesting that the stock is priced favorably relative to its growth prospects.
In comparison to its peers, NMI Holdings, Inc. has an EV to EBITDA ratio of 271.52, which is notably high, while Kemper Corp. has a much lower ratio of 77.30. Despite this, NMI's return on equity (ROE) is a strong 16.32%, indicating effective management and profitability. The company's recent performance has also outpaced the S&P 500, with a 1-year return of 26.41% compared to the index's 10.26%. Overall, these metrics reinforce the conclusion that NMI Holdings, Inc. is undervalued in the current market.