A Look at Ryan Specialty Holdings’s Valuation After Strong Q3 Results and Upgraded 2025 Guidance

Ryan Specialty Holdings (NYSE:RYAN) shares surged after the company posted third-quarter results that exceeded forecasts. The strong performance was driven by 15% organic revenue growth, along with new contributions from acquisitions. The company also raised full-year 2025 guidance.

See our latest analysis for Ryan Specialty Holdings.

This burst of strong quarterly growth and raised revenue guidance sparked a renewed sense of optimism among investors, with shares jumping over 3% in a day and nearly 6% this week. However, despite these recent gains, Ryan Specialty Holdings’ year-to-date share price return remains down 12%, and the total shareholder return over the past year is a disappointing -20%. Longer term, though, investors who have held since the IPO are still sitting on a 23% three-year total return. This suggests the latest positive results may be reviving momentum after a tough stretch.

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With shares rebounding and analyst targets still well above current levels, the question persists: is Ryan Specialty Holdings undervalued after its impressive results, or is the market already pricing in another year of strong growth?

Most Popular Narrative: 23.6% Undervalued

Ryan Specialty Holdings' most followed narrative sees fair value at $72, a substantial premium over the last close of $55.03. This gap signals a belief that the market is underestimating the company’s upside as new growth drivers emerge.

Expansion in specialty markets and investment in technology are expected to boost long-term growth, improve underwriting, and enhance operational efficiency. Strategic acquisitions, product innovation, and key carrier partnerships position the company for stable, diversified earnings and higher margins over time.

Read the complete narrative.

Want to know the bold assumptions fueling this valuation? Analysts are betting on a transformative leap in both profitability and business mix, backed by ambitious financial projections. What scenario could justifiably see margins and growth multiply at this scale? Dive in and see which future milestones are already factored into this price.

Result: Fair Value of $72 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing property insurance pricing and higher integration risks from acquisitions could challenge the optimistic case for Ryan Specialty Holdings in the quarters ahead.

Find out about the key risks to this Ryan Specialty Holdings narrative.

Another View: How Do Market Ratios Measure Up?

Stepping away from fair value estimates, market ratios reveal a different side. Ryan Specialty Holdings trades at a price-to-earnings ratio of 78.1x, which is significantly above its US Insurance industry peers averaging 13.1x and also above the fair ratio of 66.9x. This suggests the market is banking on substantial future growth, but also signals meaningful valuation risk if results fall short. What happens if expectations change?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Ryan Specialty Holdings Narrative

If you have a different perspective or want to explore the numbers firsthand, you can craft your own view of Ryan Specialty Holdings in just a few minutes. Do it your way

A great starting point for your Ryan Specialty Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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