Is PennyMac Financial Services, Inc. overvalued or undervalued?

As of 3 September 2025, the valuation grade for PennyMac Financial Services, Inc. moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued, with a P/E ratio of 14, a Price to Book Value of 1.27, and an EV to EBITDA ratio of 3.22. In comparison to peers, Mr. Cooper Group, Inc. has a significantly higher P/E ratio of 29.22, while Ryder System, Inc. shows a similar P/E of 14.15, suggesting that PennyMac is positioned competitively within its industry.
The stock has outperformed the S&P 500 in several timeframes, notably achieving a 24.47% return year-to-date compared to the S&P 500's 12.22%. This performance reinforces the narrative that, while fairly valued, PennyMac Financial Services, Inc. has demonstrated strong growth potential relative to broader market indices.