Is Regional Management Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Regional Management Corp. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.26, and an EV to EBITDA ratio of 0.73, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
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, indicating that Regional Management Corp. may offer better value relative to its earnings compared to these competitors. Despite recent underperformance over the last week and three years compared to the S&P 500, where it returned -3.88% and 15.87% respectively, the strong one-year return of 37.01% versus the S&P 500's 19.89% reinforces the attractiveness of the stock in the current market.