Is Finance of America Cos., Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Finance of America Cos., Inc. moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly given its Price to Book Value of 0.87 and an impressive ROCE of 4468.24%. In comparison to peers, Finance of America has a P/E ratio of 175, which is significantly higher than loanDepot, Inc. at -19.16 and Ocwen Financial Corp. at 3.98, suggesting that while the company is valued highly on earnings, its book value remains low relative to its market price.
Despite recent stock performance showing a decline of 8.21% year-to-date compared to a 12.22% gain in the S&P 500, the long-term return of 114.55% over the past year indicates strong recovery potential. This juxtaposition of short-term underperformance against robust long-term growth reinforces the notion that Finance of America is currently undervalued.