Is UWM Holdings Corp. overvalued or undervalued?

As of 6 May 2025, the valuation grade for UWM Holdings Corp. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current financial ratios, including a Price to Book Value of 40.74 and an EV to EBITDA ratio of 45.41, which are substantially higher than typical industry benchmarks. Additionally, the company is loss-making, reflected in its negative P/E ratio and a troubling ROE of -184.76%.
In comparison to its peers, U-Haul Holding Co. is considered very expensive with a P/E of 40.03 and an EV to EBITDA of 11.49, highlighting the stark contrast in valuation metrics within the sector. Given these ratios and the overall financial performance, UWM Holdings Corp. is assessed as overvalued. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -28.28%, significantly underperforming the S&P 500, which has returned 2.44% in the same period.