Is United Fire Group, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for United Fire Group, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 11, a Price to Book Value of 0.88, and an EV to Sales ratio of 0.42. In comparison to peers, Mercury General Corp. has a P/E of 11.03, while Palomar Holdings, Inc. shows a significantly higher P/E of 21.54, indicating that United Fire Group is positioned more conservatively within its industry.
In terms of recent performance, United Fire Group has outperformed the S&P 500 over the past year, returning 54.98% compared to the index's 17.14%. However, its longer-term returns, particularly over three and five years, lag behind the S&P 500, which returned 70.41% and 96.61%, respectively. This suggests that while the company is currently fairly valued, its growth potential may be limited relative to broader market trends.