Is Skyward Specialty Insurance Group, Inc. overvalued or undervalued?

As of 21 March 2025, the valuation grade for Skyward Specialty Insurance Group, Inc. has moved from fair to expensive. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 20, which is higher than the peer average of 19.07 for Trupanion, Inc., while the EV to EBITDA ratio of 1101.63 is significantly elevated compared to the industry norm.
In addition to these ratios, the PEG ratio of 1.32 suggests that the stock may not be justified by its growth prospects, especially when compared to Trupanion's much higher PEG of 22.43. The company's recent stock performance has outpaced the S&P 500 over the past year, returning 66.85% compared to the index's 10.26%, but this does not mitigate the current overvaluation indicated by the financial ratios.