Is NMI Holdings, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for NMI Holdings, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 8, a Price to Book Value of 1.34, and a PEG Ratio of 0.51, suggesting that it may be undervalued relative to its growth potential.
In comparison to peers, NMI Holdings, Inc. has a lower P/E ratio than American Financial Group, Inc. at 15.03 and a significantly lower EV to EBITDA ratio than Everest Group Ltd. at 264.56, which indicates that it is trading at a discount relative to some competitors. While NMI Holdings has underperformed the S&P 500 over the past year with a return of -5.45% compared to the index's 17.14%, it has outperformed over the longer term with a 3-year return of 86.42% versus 70.41% for the S&P 500, reinforcing the notion that it may be a value opportunity in the insurance sector.