Is RenaissanceRe Holdings Ltd. overvalued or undervalued?

As of 8 May 2025, RenaissanceRe Holdings Ltd. has moved from a fair to attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 8, significantly lower than its peers such as Markel Group, Inc. at 13.70 and Loews Corp. at 15.00. Additionally, RenaissanceRe's EV to EBITDA stands at 32.60, while the industry average is considerably higher, indicating a potential mispricing in the market.
The company's Price to Book Value is 1.27, and it boasts a robust ROE of 15.86%. In comparison to the broader market, RenaissanceRe's stock has underperformed the S&P 500 year-to-date, with a return of -1.57% compared to the index's 2.44%. This underperformance, combined with its attractive valuation metrics, reinforces the notion that RenaissanceRe Holdings Ltd. is undervalued relative to its peers and the market.