Is Atlanticus Holdings Corp. overvalued or undervalued?

As of 13 March 2025, Atlanticus Holdings Corp. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 7, significantly lower than its peers such as LendingClub Corp. at 24.75 and AdaptHealth Corp. at 12.72. Additionally, Atlanticus has an EV to EBITDA ratio of 1.17, which is more favorable compared to the industry average, indicating strong earnings relative to its valuation.
The company's ROCE stands at an impressive 299.97%, while the ROE is 20.37%, showcasing its efficient use of capital and strong profitability. In comparison, the PEG ratio of 0.60 further emphasizes its undervaluation relative to growth expectations. Despite a recent dip in stock performance compared to the S&P 500, with a year-to-date return of -9.16% versus the index's 2.44%, the long-term outlook remains robust, supported by a substantial 1-year return of 82.53%.