Is OppFi, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for OppFi, Inc. has moved from attractive to risky, indicating a shift in the company's perceived value. The company appears to be overvalued based on key financial metrics, including a P/E ratio of 13, a Price to Book Value of 55.68, and an EV to EBITDA ratio of 8.68. These ratios suggest that the stock may not be justified at its current price level of 13.40, especially when compared to peers such as Porch Group, Inc. with a P/E of -27.89 and The Arena Group Holdings, Inc. with a P/E of 26.89.
In terms of peer comparison, OppFi's PEG ratio of 0.18 stands out as significantly lower than that of its peers, indicating potential overvaluation relative to growth expectations. Additionally, while OppFi has shown impressive returns, outperforming the S&P 500 with a 1-year return of 300%, the high valuation ratios and the recent downgrade in valuation grade suggest caution for investors considering entry at this price point. Overall, OppFi, Inc. is currently overvalued.