Reassessing Stewart Information Services' Valuation Amid Recent Share Price Momentum and Multi-Year Gains

Stewart Information Services (STC) has outperformed the market, with a one-month and past three-month return hinting at a re-rating. Despite the recent gains, the stock trades at a fair value of $80, suggesting modest upside. However, a prolonged housing slowdown and higher operating costs could challenge the optimistic outlook. The market is already paying 21 times earnings, versus 16.5 times for peers, with a fair ratio of 20.2 times indicating a thin valuation cushion.