Is RenaissanceRe Holdings Ltd. overvalued or undervalued?

As of 23 July 2025, the valuation grade for RenaissanceRe Holdings Ltd. moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears undervalued, particularly when considering its P/E ratio of 8, which is significantly lower than the peer average of 15.03 for American Financial Group, Inc. Additionally, its EV to EBITDA ratio stands at 32.60, while Everest Group Ltd. is considerably higher at 24.62, suggesting that RenaissanceRe may offer better value relative to its earnings potential. The Price to Book Value of 1.27 also indicates that the stock is trading at a reasonable valuation compared to its book value.
In terms of performance, RenaissanceRe has underperformed the S&P 500 in the short term, with a year-to-date return of -2.54% compared to the index's 12.22%. However, over the longer term, the company has shown resilience with a 3-year return of 61.54%, albeit still trailing the S&P 500's 70.41%. This mixed performance reinforces the notion that while the stock may be undervalued based on its ratios, it has faced challenges in the market recently.