Is Root, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Root, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its P/E ratio of 40, a Price to Book Value of 7.17, and an EV to EBITDA of 141.39. In comparison, peers such as Ryan Specialty Holdings, Inc. exhibit a much higher P/E of 95.23, while CorVel Corp. has an EV to EBITDA of 49.08, suggesting that Root, Inc. is trading at a premium relative to its industry.
Additionally, while Root, Inc. has shown impressive returns over the long term, with a 3-year return of 1070.62% compared to the S&P 500's 72.78%, it has underperformed in the past year with a return of -18.34% against the S&P 500's 14.18%. This mixed performance further supports the conclusion that Root, Inc. is currently overvalued.