Reassessing Trupanion's Valuation After a Sharp Share Price Slide

Trupanion's share price has declined 30% over the past year despite growing revenue and net income. The stock is down 64% over five years. Investors are rethinking the company's growth potential, and the market is pricing in future growth. The narrative suggests Trupanion is undervalued with a fair value of $56.50, driven by long-term subscription growth, margin gains, and improved underwriting discipline. However, stagnant subscriber growth and competition could pressure pricing power and undermine the premium multiple. The current P/E ratio of 101 times profits is high compared to the US insurance industry and peers.