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

As of 2 May 2024, the valuation grade for Reinsurance Group of America, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 22, a price to book value of 1.51, and an EV to capital employed ratio of 1.62, all of which suggest a premium valuation relative to its peers. For comparison, CNA Financial Corp. has a P/E of 14.82 and Unum Group boasts a more attractive P/E of 13.25, highlighting the relative overvaluation of Reinsurance Group of America.
In terms of recent performance, the company has underperformed against the S&P 500, with a year-to-date return of -11.72% compared to the index's 12.22%. This trend is further emphasized by a one-year return of -13.68% versus the S&P 500's 17.14%, reinforcing the notion that the stock may not justify its current valuation.