Is Walker & Dunlop, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for Walker & Dunlop, Inc. has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 4.44, and a dividend yield of 379.12%, which suggests strong income potential relative to its price.
In comparison to peers, Walker & Dunlop's P/E ratio of 26.96 is notably higher than Air Lease Corp.'s 14.59, which is classified as fair, and Ryder System, Inc.'s 11.77, which is very attractive. Despite the high P/E ratio, the company's strong dividend yield and favorable EV to EBITDA ratio indicate that it may be undervalued relative to its earnings potential. Additionally, while Walker & Dunlop has underperformed the S&P 500 over the past year, its recent stock performance has shown resilience, with a 1-week return of 2.29% compared to a slight decline in the S&P 500.