Is Nelnet, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Nelnet, Inc. has moved from attractive to very attractive, indicating a strong positive shift in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 17, a PEG ratio of 0.35, and an EV to EBITDA of 3.09, which are all favorable compared to industry standards.
In comparison to peers, Nelnet's P/E ratio of 11.39 is significantly lower than Mr. Cooper Group, Inc.'s 29.22 and FirstCash Holdings, Inc.'s 26.74, highlighting its relative undervaluation. Additionally, the company's impressive ROCE of 39.69% further underscores its operational efficiency. Over the past year, Nelnet's stock has returned 13.32%, which is less than the S&P 500's 17.14%, suggesting that while the stock has performed well, it still has room for growth relative to the broader market.