Is Navient Corp. overvalued or undervalued?

As of 2 May 2025, Navient Corp. has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 58, significantly higher than its peers, with Mr. Cooper Group, Inc. at 18.95 and SLM Corp. at 17.49. Additionally, the EV to EBITDA ratio for Navient is 1.01, while its peers average around 4.48, indicating a potential overvaluation.
Other notable ratios include a Price to Book Value of 2.07 and a Dividend Yield of 109.52%, which, while impressive, may not sufficiently justify the high valuation given the low ROE of 3.58%. In comparison to the S&P 500, Navient's stock has underperformed over the past year, declining by 6.19% against the index's 10.26% gain, further supporting the view that the stock may be overvalued at its current price of 13.63.