Is Regional Management Corp. overvalued or undervalued?

Sep 20 2025 06:14 PM IST
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As of August 11, 2025, Regional Management Corp. is considered fairly valued with a P/E ratio of 12 and strong performance metrics, including a 41.43% return over the past year, despite being priced higher than peers like Velocity Financial and Runway Growth Finance.
As of 11 August 2025, the valuation grade for Regional Management Corp. has moved from very attractive to attractive, indicating a slight decrease in perceived value. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 0.73, and a PEG ratio of 0.26, which suggest a reasonable valuation relative to its growth prospects.

In comparison to peers, Velocity Financial, Inc. has a P/E of 9.22, while Runway Growth Finance Corp. shows a notably low P/E of 5.47, both indicating that Regional Management Corp. is priced higher than these competitors. Despite this, the company's strong ROCE of 148.60% and a solid dividend yield of 3.05% provide some justification for its valuation. Over the past year, Regional Management Corp. has returned 41.43%, significantly outperforming the S&P 500's 17.14%, reinforcing its attractiveness in the current market.
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