Is PennyMac Financial Services, Inc. overvalued or undervalued?

As of 22 April 2025, PennyMac Financial Services, Inc. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 3.22, and a PEG ratio of 0.12, indicating strong growth potential relative to its price.
In comparison to its peers, PennyMac's P/E ratio of 13.77 is lower than Air Lease Corp.'s 14.59, while it is more favorable than Ryder System, Inc.'s 11.77, which is categorized as very attractive. The company also boasts a robust ROCE of 38.81%, suggesting efficient capital use. Notably, PennyMac's stock has outperformed the S&P 500 over the past three years, with a return of 125.48% compared to the index's 58.74%, reinforcing its attractive valuation.