Is Oxbridge Re Holdings Ltd. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Oxbridge Re Holdings Ltd. moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.41 and a negative Return on Equity of -21.73%. Additionally, the EV to Sales ratio stands at 2.45, which is concerning for a company in a loss-making position.
In comparison to its peers, Oxbridge Re Holdings Ltd. has a P/E ratio of -5.6795, while Investors Title Co. shows a more favorable P/E of 16.4261, highlighting a stark contrast in valuation. Other risky peers like Ambac Financial Group, Inc. and MBIA, Inc. also reflect negative P/E ratios, reinforcing the challenging landscape for Oxbridge. Notably, while the company has shown strong short-term returns, such as a 44.28% increase over the past month compared to the S&P 500's 2.33%, its year-to-date return of -40.30% against the S&P's 12.22% suggests underlying issues that may not support its current valuation.