Is Safety Insurance Group, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Safety Insurance Group, Inc. moved from expensive to fair. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 19, a Price to Book Value of 1.67, and a PEG Ratio of 0.46. In comparison, American Financial Group, Inc. has a P/E of 15.03, while Mercury General Corp. boasts a more attractive P/E of 11.03.
Despite the fair valuation, Safety Insurance Group has underperformed against the S&P 500, with a year-to-date return of -11.91% compared to the index's 12.22%. This trend continues over multiple periods, suggesting that while the stock may be fairly valued, it has not delivered competitive returns in the recent past.