Is Upbound Group, Inc. overvalued or undervalued?

As of 28 April 2025, the valuation grade for Upbound Group, Inc. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 18, a PEG ratio of 0.01, and an impressive dividend yield of 305.02%. In comparison to peers, Mr. Cooper Group, Inc. has a significantly higher P/E of 29.22, while Air Lease Corp. shows a lower P/E of 16.14, reinforcing Upbound's favorable valuation position.
Despite a recent decline in stock performance, with a YTD return of -6.27% compared to the S&P 500's 12.22%, the long-term outlook remains promising, as evidenced by a 3-year return of 13.21% versus the S&P 500's 70.41%. This suggests that while short-term performance may be lagging, the underlying fundamentals and valuation metrics indicate that Upbound Group, Inc. is positioned for potential growth.