Is Stewart Information Services Corp. overvalued or undervalued?

As of 25 July 2025, the valuation grade for Stewart Information Services Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 24, which is significantly higher than its peers, such as Old Republic International Corp. with a P/E of 11.21 and Radian Group Inc. at 8.98. Additionally, the EV to EBITDA ratio stands at 31.25, further supporting the notion of overvaluation when compared to the industry.
In terms of growth potential, the PEG ratio of 0.32 suggests that the stock may be undervalued relative to its growth, but this is overshadowed by the overall expensive valuation metrics. The recent stock performance shows that while Stewart Information Services Corp. has outperformed the S&P 500 over the past year with a return of 1.65% compared to 17.14%, its longer-term performance has lagged behind, with a 5-year return of 78.38% versus the S&P 500's 96.61%. This combination of metrics suggests that the stock is currently overvalued.