Is Ryan Specialty Holdings, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Ryan Specialty Holdings, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing relative to its fundamentals. The company appears overvalued, with a P/E ratio of 121, a Price to Book Value of 33.16, and an EV to EBIT of 30.15, all of which are substantially higher than its peers, such as CorVel Corp. with a P/E of 79.07 and Goosehead Insurance, Inc. at 93.96.
In terms of performance, Ryan Specialty has underperformed compared to the S&P 500, with a year-to-date return of -17.21% versus the S&P 500's 12.22%. This trend is further reflected in the one-year return of -15.43% compared to the S&P 500's 17.14%, reinforcing the notion that the stock is not only overvalued but also struggling to deliver returns relative to broader market benchmarks.