Is Unum Group overvalued or undervalued?

As of 8 May 2025, the valuation grade for Unum Group has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently assessed as undervalued. Key ratios supporting this assessment include a P/E ratio of 14, a Price to Book Value of 2.01, and a PEG ratio of 0.58, which suggests that the stock is trading at a lower valuation relative to its growth potential.
In comparison to its peers, Unum Group's P/E ratio of 13.72 is significantly lower than that of Cincinnati Financial Corp., which stands at 19.43, and Reinsurance Group of America, Inc., which is at 20.61, indicating that Unum Group may offer better value for investors. Additionally, its EV to EBITDA ratio of 185.80 is higher than the industry average, but the PEG ratio suggests that the stock is still attractive given its growth prospects. Notably, Unum Group has outperformed the S&P 500 with a 1-year return of 57.46% compared to the index's 10.26%, reinforcing the narrative of its undervaluation.