Is ProAssurance Corp. overvalued or undervalued?

As of 10 October 2025, ProAssurance Corp. has moved from a fair to an expensive valuation grade. The company appears to be overvalued, as indicated by a P/E ratio of 33, significantly higher than its peer average of approximately 20.8, and an EV to EBITDA ratio of 94.47, which also stands out unfavorably compared to peers like The Hanover Insurance Group, Inc. with an EV to EBITDA of 0.00. Additionally, the PEG ratio of 0.21 suggests that the stock is not just expensive in absolute terms but also in relation to its growth prospects.
In terms of performance, ProAssurance Corp. has shown a strong year-to-date return of 50.22%, outperforming the S&P 500's return of 11.41% during the same period. However, over a 3-year and 5-year horizon, the company has underperformed compared to the S&P 500, with returns of 21.94% and 47.90%, respectively, against the index's 81.39% and 88.45%. This mixed performance further supports the conclusion that ProAssurance Corp. is currently overvalued.