Is PennyMac Financial Services, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for PennyMac Financial Services, Inc. moved from attractive to very attractive. The company is currently undervalued based on its strong financial metrics. Key ratios include a P/E ratio of 14, a Price to Book Value of 1.27, and an EV to EBITDA of 3.22, which suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, PennyMac's P/E ratio of 14 is lower than Mr. Cooper Group, Inc.'s 29.22 and slightly higher than Ryder System, Inc.'s 14.15, indicating a favorable position within its industry. The PEG ratio of 0.12 further emphasizes its undervaluation relative to growth expectations. Notably, while PennyMac's stock returned 26.21% over the past year, the S&P 500 returned 19.89%, reinforcing the attractiveness of the stock in the current market environment.