Is SWK Holdings Corp. overvalued or undervalued?

As of 25 April 2025, SWK Holdings Corp. has moved from a fair to attractive valuation grade. The company appears to be undervalued, with a P/E ratio of 9, significantly lower than peers such as Willis Lease Finance Corp. at 8.73 and Guild Holdings Co. at 17.05. Additionally, SWK's price to book value stands at 0.60, and its EV to EBITDA ratio is 4.06, indicating a favorable valuation compared to its industry.
In the peer comparison, SWK Holdings Corp. shows a PEG ratio of 0.25, suggesting strong growth potential relative to its price. Other attractive peers include Velocity Financial, Inc. with a P/E of 9.78 and Regional Management Corp. at 11.62. Despite recent underperformance compared to the S&P 500, with a year-to-date return of -7.44% versus the index's 2.44%, the current valuation metrics suggest that SWK Holdings Corp. is positioned for potential upside.