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 appears to be overvalued, particularly when considering its P/E ratio of 40, a Price to Book Value of 7.17, and an EV to EBITDA ratio of 141.39, which are significantly higher than typical industry benchmarks.
In comparison to peers, Ryan Specialty Holdings, Inc. has a P/E of 95.23, while CorVel Corp. shows a P/E of 79.07, both indicating a higher valuation than Root, Inc. However, Root's PEG ratio of 0.27 suggests potential growth relative to its price, which could be a positive sign. Despite this, Root's recent stock performance shows a 1Y return of -18.34%, underperforming the S&P 500's 14.18%, reinforcing the notion of its overvaluation in the current market context.