Is Radian Group Inc. overvalued or undervalued?

As of 30 April 2025, Radian Group Inc. has moved from a fair to attractive valuation grade, indicating a shift in its market perception. The company appears undervalued with a P/E ratio of 8, significantly lower than its peer Assured Guaranty Ltd., which has a P/E of 8.69. Additionally, Radian's price-to-book value stands at 1.12, while its EV to capital employed ratio is 1.11, suggesting that the company is trading at a reasonable valuation relative to its assets.
In comparison to its peers, Radian Group Inc. shows a more favorable valuation profile, particularly when contrasted with Stewart Information Services Corp., which is considered expensive with a P/E ratio of 23.21. The company's dividend yield of 3.00% and ROE of 13.41% further reinforce its attractiveness. Notably, Radian has outperformed the S&P 500 over various time frames, including a 17.15% return over the past year compared to the S&P 500's 10.26%, adding to the case for its undervaluation.