Is Ocwen Financial Corp. overvalued or undervalued?

As of 5 November 2024, Ocwen Financial Corp. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 4, significantly lower than its peers such as Willis Lease Finance Corp. at 8.73 and Guild Holdings Co. at 17.05. Additionally, Ocwen's price to book value stands at 0.59, and it boasts an impressive ROCE of 150.51%, indicating strong operational efficiency.
In comparison to its peers, Ocwen's EV to EBITDA ratio of 0.15 is notably lower than that of its competitors, suggesting that it is trading at a discount relative to its earnings potential. The PEG ratio of 0.01 further reinforces the undervaluation narrative, as it indicates that the stock is priced very attractively relative to its growth expectations. Over the past year, Ocwen has outperformed the S&P 500 with a return of 63.25% compared to the index's 10.26%, highlighting the market's recognition of its value proposition.