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

As of 3 October 2025, the valuation grade for Skyward Specialty Insurance Group, Inc. moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued based on its current metrics, with a P/E ratio of 20, a Price to Book Value of 2.97, and a PEG Ratio of 1.32, suggesting that it may be trading below its intrinsic value compared to its growth prospects.
In comparison to its peers, Skyward's P/E ratio is higher than MGIC Investment Corp. at 10.15 and Enact Holdings, Inc. at 8.46, but lower than White Mountains Insurance Group Ltd. at 16.04, which is considered expensive. The EV to EBITDA ratio of 1101.63 also stands out, indicating a significant difference in valuation compared to peers like F&G Annuities & Life, Inc. at 48.87. Over the past year, Skyward's stock has returned 10.17%, which is notably lower than the S&P 500's return of 17.82%, reinforcing the notion that the stock may be undervalued relative to broader market performance.