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 favorable shift in its valuation outlook. The company is currently considered undervalued, supported by a P/E ratio of 12, an EV to EBITDA ratio of 0.73, and a PEG ratio of 0.26. In comparison to peers, World Acceptance Corp. has a P/E of 11.48, while Velocity Financial, Inc. shows a very attractive valuation with a P/E of 9.22.
Despite a recent dip in the stock's performance, with a 1-week return of -0.98% compared to the S&P 500's 0.71%, the longer-term returns are compelling, as evidenced by a 1-year return of 38.29% against the S&P 500's 19.89%. This suggests that while the stock may have faced short-term challenges, its overall valuation remains appealing relative to its peers.