Is SelectQuote, Inc. overvalued or undervalued?

As of 14 May 2025, SelectQuote, Inc. has moved from an attractive to an expensive valuation grade. The company is currently overvalued, with a P/E ratio of 96, significantly higher than its peers, such as Skyward Specialty Insurance Group, Inc. with a P/E of 19.07 and Donegal Group, Inc. at 10.48. Additionally, SelectQuote's EV to EBITDA stands at 5.74, which is more favorable than some peers but still reflects a high valuation relative to its earnings potential.
The company's financial metrics reveal a Price to Book Value of 0.68 and a PEG ratio of 0.88, indicating some growth potential, yet the overall valuation remains concerning given the high P/E ratio. Recent stock performance has been poor, with a year-to-date return of -39.78%, contrasting sharply with the S&P 500's positive return of 2.44% during the same period. This disparity further underscores the overvaluation of SelectQuote, Inc. in the current market environment.