Is ProAssurance Corp. overvalued or undervalued?

As of 7 August 2025, ProAssurance Corp. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 33, which is significantly higher than its peers like The Hanover Insurance Group, Inc. at 19.44 and Mercury General Corp. at 11.03. Additionally, the EV to EBITDA ratio stands at an extremely high 94.47, further indicating overvaluation compared to the industry average.
In terms of peer comparison, ProAssurance's PEG ratio of 0.21 is relatively attractive, but this is overshadowed by its high P/E and EV to EBITDA ratios. The company has outperformed the S&P 500 year-to-date with a return of 49.53% compared to the index's 12.22%, but its longer-term performance over 3 years and 5 years shows a stark underperformance relative to the S&P 500, which may raise concerns about sustainability. Overall, the valuation metrics suggest that ProAssurance Corp. is overvalued in the current market.