Is Velocity Financial, Inc. overvalued or undervalued?

As of 6 March 2025, the valuation grade for Velocity Financial, Inc. has moved from very attractive to attractive. The company is currently fairly valued. Key ratios include a P/E ratio of 9, an EV to EBITDA of 1.38, and a PEG ratio of 0.61, indicating that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, Velocity Financial's P/E ratio of 9.78 is notably lower than LendingClub Corp.'s 24.75 and slightly higher than World Acceptance Corp.'s 9.09. The EV to EBITDA ratio of 1.38 is also competitive, especially when compared to Atlanticus Holdings Corp. at 1.08. While the stock has underperformed the S&P 500 year-to-date, it has shown strong long-term growth with a 338.82% return over the past five years, which may support its current valuation status.