Is Palomar Holdings, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Palomar Holdings, Inc. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 33, a Price to Book Value of 5.62, and a PEG Ratio of 0.81, which suggests that while the stock is not undervalued, it is also not excessively priced compared to its growth potential.
In comparison to its peers, Palomar's P/E ratio of 33 is higher than that of American Financial Group, Inc. at 15.03 and The Hanover Insurance Group, Inc. at 19.44, indicating that Palomar may be priced at a premium relative to some competitors. However, its PEG ratio of 0.81 is more favorable than the industry average, suggesting potential for growth. Over the past year, Palomar has returned 21.55%, outperforming the S&P 500's return of 17.14%, which supports the notion that the stock is performing well relative to the broader market.