Is ProAssurance Corp. overvalued or undervalued?

As of 14 November 2025, ProAssurance Corp. moved from expensive to fair in its valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 33, a Price to Book Value of 1.13, and an EV to EBITDA of 94.47. In comparison to peers, The Hanover Insurance Group, Inc. has a P/E of 19.44, while Mercury General Corp. shows a P/E of 11.03, indicating that ProAssurance is priced higher than some of its competitors.
Despite its fair valuation, ProAssurance has demonstrated strong performance year-to-date with a return of 50.85%, significantly outperforming the S&P 500's return of 14.49% in the same period. However, over the longer term, the company has lagged behind the S&P 500, with a 3-year return of 22.89% compared to the index's 70.17%. This mixed performance suggests that while the current valuation is justified, there may be concerns about future growth relative to the broader market.