Is ProAssurance Corp. overvalued or undervalued?

As of 14 May 2025, the valuation grade for ProAssurance Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 33, which is notably higher than its peer Safety Insurance Group, Inc., which has a P/E of 19.04. Additionally, ProAssurance's EV to EBITDA stands at 94.47, further underscoring its expensive valuation relative to the industry.
In comparison to its peers, ProAssurance Corp. exhibits a PEG ratio of 0.21, which is relatively attractive, but this is overshadowed by its high P/E and EV metrics. The company's return performance has been strong, with a year-to-date return of 44.06%, significantly outperforming the S&P 500's 2.44% during the same period. However, the overall financial ratios suggest that ProAssurance is not justified at its current valuation levels, reinforcing the conclusion that it is overvalued.