Is PROG Holdings, Inc. overvalued or undervalued?

As of 19 May 2025, the valuation grade for PROG Holdings, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 8, which is substantially lower than its peers, such as H&E Equipment Services, Inc. with a P/E of 34.29 and Nelnet, Inc. at 16.63. Additionally, PROG Holdings boasts a PEG ratio of 0.12 and an impressive ROE of 36.54%, further supporting its undervaluation status.
In comparison to its peers, PROG Holdings' EV to EBITDA ratio stands at 1.19, which is more favorable than H&E Equipment Services' 7.74, highlighting its efficiency in generating earnings relative to its enterprise value. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -33.60% compared to the index's 2.44%, reinforcing the notion that the stock may be undervalued despite its strong fundamentals.