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 perception regarding its financial health and market position. The company appears to be overvalued, particularly when considering its high Price to Book Value of 55.68 and a P/E Ratio of 13, which is relatively low compared to its peers. The EV to EBITDA ratio stands at 8.68, suggesting that the company may not be generating sufficient earnings relative to its enterprise value.
In comparison to its peers, OppFi, Inc. has a P/E of 11.96, which is higher than The Arena Group Holdings, Inc. at 9.76, but significantly lower than Crexendo, Inc. at 60.67, indicating a mixed competitive landscape. The PEG Ratio of 0.18 further emphasizes that the stock may be priced too high relative to its growth prospects. Notably, OppFi has significantly outperformed the S&P 500 with a 1Y return of 177.29% compared to the index's 17.14%, which may not be sustainable given its current valuation metrics.