Is Safety Insurance Group, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Safety Insurance Group, Inc. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued. Key ratios include a P/E ratio of 19, a Price to Book Value of 1.67, and an EV to EBITDA of 146.74, which are significantly higher than industry norms.
In comparison to peers, Safety Insurance Group's P/E ratio of 19.04 is similar to that of its closest competitor, suggesting that it is priced at a premium without justifiable growth prospects. The PEG ratio of 0.46 indicates that the stock might be undervalued relative to its growth rate, yet the overall valuation suggests caution. Additionally, the company's recent performance has lagged behind the S&P 500, with a year-to-date return of -3.67% compared to the index's 2.44%, reinforcing the view that the stock may not be a favorable investment at its current price.