Is Root, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Root, Inc. has moved from attractive to very attractive, indicating a stronger position in the market. The company appears undervalued, supported by a P/E ratio of 40, a PEG ratio of 0.27, and a price-to-book value of 7.17. In comparison, peers like Ryan Specialty Holdings, Inc. have a much higher P/E ratio of 95.23, while CorVel Corp. shows a P/E of 79.07, suggesting that Root, Inc. is trading at a significant discount relative to its peers.
Despite recent stock performance showing a decline of 6.28% over the past week compared to a 1.09% gain in the S&P 500, Root, Inc. has delivered impressive returns year-to-date at 19.52% against the S&P 500's 14.18%, and an outstanding 122.12% return over the past year compared to the S&P 500's 17.82%. This strong performance, combined with its favorable valuation ratios, reinforces the conclusion that Root, Inc. is currently undervalued in the market.