Is PennyMac Mortgage Investment Trust overvalued or undervalued?

Jun 25 2025 08:33 AM IST
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As of April 27, 2023, PennyMac Mortgage Investment Trust is considered very attractive and undervalued, with a P/E ratio of 3, a Price to Book Value of 0.57, and a high Dividend Yield of 965.84%, despite recent underperformance against the S&P 500.
As of 27 April 2023, the valuation grade for PennyMac Mortgage Investment Trust moved from does not qualify to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, supported by a P/E ratio of 3, a Price to Book Value of 0.57, and a robust Dividend Yield of 965.84%.

In comparison to its peers, PennyMac stands out with a lower P/E ratio than The GEO Group, Inc., which has a P/E of 31.10, and a more favorable EV to EBITDA ratio compared to Alexander & Baldwin, Inc., which sits at 8.86. Despite recent underperformance against the S&P 500 over the past year, where it returned -8.55% compared to the index's 10.26%, the company's strong ROCE of 76.02% and ROE of 21.99% suggest solid operational efficiency, reinforcing its undervalued status.
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