Looking at some of the arguments here, I would like to say that P/E is not a good gauge on how a sector is good or how a stock is undervalue. PE is made up of price and eps. Price fluctuates by demand and supply and eps is calculated using historical values. By using price in the equation, it already breaks the usefulness of PE.
Of course, there is no one single measurement that would determine if a stock is overvalue or undervalue. For me, I would normally use a combination of ratios but more importantly is the art of seeing how a business would perform in the future by reading the Chairman and CEO statements in the annual report. If you all have read the annual report, you would have realise that RMG has an insurance business.
If you all don't know how profitable is insurance business, you might want to read up on it. It is recurring revenue for RMG. Though it forms only a small portion of RMG's business, I can see the prospects of it.