Is Progressive Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Progressive Corp. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 26, a Price to Book Value of 7.71, and an EV to Sales ratio of 2.79.
In comparison to its peers, Progressive Corp. has a lower P/E ratio than The Travelers Cos., Inc. at 47.55 and Aflac, Inc. at 34.96, but it is still higher than MetLife, Inc. at 17.51. The PEG ratio of 0.51 suggests that the stock may be undervalued relative to its growth potential, but the overall high valuation metrics indicate that it is trading at a premium. Notably, over the past year, Progressive Corp. has outperformed the S&P 500, returning 27.34% compared to the index's 10.26%.