Is Walker & Dunlop, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Walker & Dunlop, Inc. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, particularly when considering its P/E ratio of 28, which is lower than the peer average of approximately 31.20 for similar firms. Additionally, the EV to EBITDA ratio stands at 4.44, suggesting a competitive valuation compared to peers like Mr. Cooper Group, Inc. with an EV to EBITDA of 18.86.
Despite the attractive valuation metrics, Walker & Dunlop has underperformed relative to the S&P 500, with a year-to-date return of -16.41% compared to the index's 13.30%. This underperformance over the past year, where the stock declined by 30.13% against the S&P 500's 14.08% gain, highlights potential concerns despite the favorable valuation ratios. Overall, the company’s current valuation metrics suggest it is undervalued relative to its peers and the market.