Is LendingClub Corp. overvalued or undervalued?

As of 30 April 2025, LendingClub Corp. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 24, which is higher than the industry average but supported by a PEG ratio of 0.75, indicating growth potential relative to its earnings. Additionally, the EV to EBITDA ratio stands at 0.83, suggesting that the company is trading at a reasonable multiple compared to its earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, LendingClub Corp. has a P/E ratio of 24.75, which is significantly higher than AdaptHealth Corp.'s P/E of 12.72, while Encore Capital Group, Inc. is at a risky valuation with a P/E of 46.61. Despite the higher valuation metrics, LendingClub's strong ROCE of 65.15% and a low EV to Sales ratio of 0.22 further support its undervaluation narrative. Notably, the company's stock has outperformed the S&P 500 over the past year, returning 41.16% compared to the S&P 500's 10.26%, reinforcing the case for its attractive valuation.