Is Ocwen Financial Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Ocwen Financial Corp. has moved from attractive to very attractive. The company appears to be undervalued, particularly when considering its P/E ratio of 4, a Price to Book Value of 0.59, and an EV to EBITDA ratio of 0.15, which are significantly lower than its peers. For instance, Guild Holdings Co. has a P/E of 34.06, while Regional Management Corp. shows a P/E of 17.39, highlighting Ocwen's relative undervaluation.
In terms of returns, Ocwen has outperformed the S&P 500 year-to-date with a return of 43.24% compared to the index's 12.22%. However, over the longer term, the stock has lagged behind the S&P 500 in both the 3-year and 10-year periods, with returns of 58.58% and 86.71%, respectively, versus 70.41% and 231.64% for the index. This mixed performance, combined with its very attractive valuation metrics, suggests that Ocwen Financial Corp. is currently positioned as an undervalued opportunity in the finance sector.