Is ProAssurance Corp. overvalued or undervalued?

As of 14 November 2025, the valuation grade for ProAssurance Corp. moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 33, which is higher than the peer average of 29.65, while the PEG ratio is notably low at 0.21, suggesting potential for growth relative to its price. Additionally, the EV to EBITDA ratio is quite high at 94.47, indicating that the market may be pricing in significant future growth.
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, both indicating that ProAssurance is trading at a premium relative to these companies. Despite this, ProAssurance has outperformed the S&P 500 year-to-date with a return of 50.85% compared to 14.49%, reflecting strong market sentiment towards the stock in the short term. However, over longer periods, such as 3 years and 5 years, it has lagged behind the S&P 500, which may suggest caution for future performance.