Is Stewart Information Services Corp. overvalued or undervalued?

As of 10 June 2025, the valuation grade for Stewart Information Services Corp. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 31.25, and a PEG ratio of 0.32, which suggests that despite a relatively low growth expectation, the stock price is high compared to its earnings growth potential.
In comparison to peers, Radian Group Inc. has a P/E ratio of 8.44 and Assured Guaranty Ltd. stands at 8.69, both indicating a more favorable valuation relative to Stewart. Additionally, the company's dividend yield of 3.11% does provide some return to shareholders, but the overall metrics suggest that the stock is not a compelling buy at its current price of 65.61. Notably, while Stewart has outperformed the S&P 500 over the past five years with a return of 102.44%, this performance does not justify its current valuation levels.