Is RLI Corp. overvalued or undervalued?

As of 16 April 2025, RLI Corp. has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 31, a Price to Book Value of 5.43, and an EV to Capital Employed of 6.55. In comparison, Cincinnati Financial Corp. has a P/E of 19.43 and is rated fair, while Unum Group, rated attractive, has a P/E of 13.72.
Despite a recent stock return of 1.20% over the past week, RLI Corp.'s year-to-date performance shows a decline of 10.61%, contrasting with a 2.44% gain in the S&P 500. This further highlights the company's overvaluation relative to its peers and the broader market.