Is SelectQuote, Inc. overvalued or undervalued?

As of 21 August 2025, the valuation grade for SelectQuote, Inc. has moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 96, which is high compared to its peers, but its Price to Book Value stands at a low 0.68, suggesting potential for growth. Additionally, the EV to EBITDA ratio is 5.74, which is favorable compared to Donegal Group, Inc. with a much higher EV to EBITDA of 163.77, highlighting SelectQuote's relative value.
In terms of performance, SelectQuote's stock has shown a mixed return profile, with a year-to-date decline of 44.62% compared to a 12.22% gain in the S&P 500, while over three years, it has returned 63.49% against the S&P 500's 70.41%. This contrast reinforces the notion that SelectQuote may be undervalued, especially given its attractive valuation ratios and the potential for recovery in the insurance sector.