Is PennyMac Financial Services, Inc. overvalued or undervalued?

As of 31 October 2025, PennyMac Financial Services, Inc. has moved from an attractive to a very attractive valuation grade. The company appears to be undervalued, supported by a P/E ratio of 14, a Price to Book Value of 1.27, and an EV to EBITDA of 3.22. In comparison to peers, Mr. Cooper Group, Inc. has a significantly higher P/E ratio of 29.22, while Blue Owl Capital Corp. shows a lower P/E of 10.91, indicating that PennyMac is positioned favorably within its industry.
Despite recent short-term underperformance against the S&P 500, with a 1-week return of -5.17% compared to the index's 0.71%, the company's longer-term performance is strong, boasting a 3-year return of 135.95% versus the S&P 500's 76.66%. This reinforces the notion that PennyMac Financial Services, Inc. is currently undervalued relative to its growth potential and industry peers.