Is Trupanion, Inc. overvalued or undervalued?

As of 7 August 2025, Trupanion, Inc. has moved from a risky to an expensive valuation grade. The company appears to be overvalued, given its high P/E ratio of 2162, a Price to Book Value of 6.48, and an EV to EBITDA of 119.55. In comparison, peers such as AXIS Capital Holdings Ltd. and MGIC Investment Corp. have much lower P/E ratios of 18.60 and 10.15, respectively, indicating that Trupanion is trading at a significant premium relative to its industry counterparts.
The stock has underperformed against the S&P 500 across multiple time frames, with a 1-year return of -2.18% compared to the S&P 500's 17.14%, and a staggering 5-year return of -35.37% against the index's 96.61%. This performance further supports the notion that Trupanion is overvalued in the current market environment.