Is OneMain Holdings, Inc. overvalued or undervalued?

As of 24 January 2020, the valuation grade for OneMain Holdings, Inc. moved from attractive to very attractive, indicating a significant improvement in its valuation stance. The company is currently considered undervalued. Key ratios supporting this assessment include a P/E ratio of 4, an EV to EBITDA of 1.19, and a PEG ratio of 0.37, all of which are substantially lower than industry averages, suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to peers, OneMain Holdings shows a more favorable valuation with a P/E of 3.60, while AerCap Holdings NV stands at 10.43 and SoFi Technologies, Inc. at 33.11. Additionally, OneMain's impressive ROE of 54.29% and ROCE of 211.84% further highlight its operational efficiency compared to competitors. Recent stock performance indicates that OneMain has outperformed the S&P 500 over the past week and month, reinforcing the narrative of its undervaluation.