Is Root, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Root, Inc. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios highlight this assessment, with a P/E ratio of 40, a Price to Book Value of 7.17, and an EV to EBITDA of 141.39. In comparison to peers, Ryan Specialty Holdings, Inc. has a significantly higher P/E of 95.23, while CorVel Corp. also shows a high P/E of 79.07, suggesting that Root, Inc. is priced above its intrinsic value relative to its industry.
Despite a strong 3-year return of 942.55%, which far outpaces the S&P 500's 70.17% during the same period, the recent performance shows a decline of 4.65% over the past month compared to the S&P 500's gain of 1.35%. This mixed performance further underscores the overvaluation concern for Root, Inc.