Is OneMain Holdings, Inc. overvalued or undervalued?

As of 24 January 2020, the valuation grade for OneMain Holdings, Inc. moved from fair to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 4, a PEG ratio of 0.37, and an EV to EBITDA ratio of 1.19, all of which suggest that the stock is trading at a lower valuation compared to its earnings and growth potential.
In comparison to its peers, OneMain Holdings has a notably lower P/E ratio than Ryder System, Inc. at 14.15 and Blue Owl Capital Corp. at 10.91, reinforcing its undervaluation. Additionally, OneMain's impressive ROE of 54.29% and ROCE of 211.84% highlight its strong profitability relative to its equity and capital employed. Over the past year, OneMain has outperformed the S&P 500 with a return of 27.62% compared to the benchmark's 17.14%, further supporting the case for its attractive valuation.