Is Root, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Root, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 40, a Price to Book Value of 7.17, and an EV to EBITDA ratio of 141.39. In comparison, peers such as Ryan Specialty Holdings, Inc. and CorVel Corp. exhibit significantly higher P/E ratios of 95.23 and 79.07, respectively, suggesting that Root, Inc. is trading at a premium relative to its peers.
Despite a strong three-year return of 874.65%, which far outpaces the S&P 500's 70.17%, the recent performance has been lackluster, with a one-year return of -2.92% compared to the S&P 500's 13.19%. This divergence in performance reinforces the notion that Root, Inc. may be overvalued in the current market environment.