Is Reinsurance Group of America, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Reinsurance Group of America, Inc. has moved from fair to expensive. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 22, which is higher than the peer average of 19.43 for Cincinnati Financial Corp. and 13.72 for Unum Group, indicating a premium valuation compared to its peers. Additionally, the price-to-book value is 1.51, further suggesting that the stock is trading at a higher valuation relative to its net assets.
In comparison to its peers, Reinsurance Group of America, Inc. has a lower return on equity (ROE) of 6.95%, which does not justify its higher valuation. The company's recent stock performance has been underwhelming, with a year-to-date return of -7.22%, contrasting sharply with the S&P 500's gain of 2.44% in the same period. Overall, these factors contribute to the conclusion that Reinsurance Group of America, Inc. is overvalued in the current market environment.