Is Regional Management Corp. overvalued or undervalued?

Jun 25 2025 08:50 AM IST
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As of August 8, 2024, Regional Management Corp. is considered undervalued with a valuation grade upgrade to attractive, featuring a P/E ratio of 12, a PEG ratio of 0.26, and a strong ROCE of 148.60%, despite a year-to-date stock decline of 18.07%.
As of 8 August 2024, the valuation grade for Regional Management Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 12, a Price to Book Value of 1.08, and an EV to EBITDA of 0.73. In comparison to its peers, LendingClub Corp. has a significantly higher P/E of 24.75, while World Acceptance Corp. shows a lower P/E of 9.09, highlighting Regional Management Corp.'s relative attractiveness in the market.

The company's strong financial metrics, including a PEG ratio of 0.26 and a remarkable ROCE of 148.60%, further support the undervaluation thesis. Despite recent stock performance showing a decline of 18.07% year-to-date compared to a 2.44% increase in the S&P 500, the fundamentals suggest that Regional Management Corp. offers a compelling investment opportunity at its current price of 27.84.
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