Is PROG Holdings, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for PROG Holdings, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, particularly when considering its P/E ratio of 8, which is notably lower than peers like SLM Corp. with a P/E of 23.91 and Nelnet, Inc. at 11.39. Additionally, the EV to EBITDA ratio stands at 1.19, which is also less favorable compared to the industry benchmarks.
In terms of performance, PROG Holdings has shown a stark contrast to the S&P 500, with a year-to-date return of -33.48% compared to the index's positive return of 12.26%. This underperformance is further highlighted by a 1-year return of -39.34%, while the S&P 500 gained 11.00%. Given these metrics and the peer comparisons, it is clear that PROG Holdings, Inc. is not only overvalued but also struggling significantly in the market.