Is United Fire Group, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for United Fire Group, Inc. has moved from very attractive to attractive, indicating a shift in perception regarding its investment appeal. The company is currently assessed as undervalued, supported by a P/E ratio of 11, a price to book value of 0.88, and an EV to sales ratio of 0.42. These metrics suggest that the stock is trading below its intrinsic value compared to its peers.
In comparison to notable competitors, Lemonade, Inc. has a significantly negative P/E of -12.77, while Safety Insurance Group, Inc. is considered expensive with a P/E of 19.04. The PEG ratio for United Fire Group, Inc. stands at an impressive 0.02, further reinforcing its undervaluation relative to the industry. Additionally, the company's recent stock performance has outpaced the S&P 500 over the past year, returning 36.18% compared to the index's 10.26%, which may indicate positive market sentiment despite the overall valuation adjustment.