Is Willis Lease Finance Corp. overvalued or undervalued?

As of 25 August 2025, the valuation grade for Willis Lease Finance Corp. has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears undervalued based on its current metrics, with a P/E ratio of 9, a PEG ratio of 0.13, and an EV to EBITDA ratio of 9.57. In comparison to peers, LendingClub Corp. has a significantly higher P/E ratio of 25.58, while EZCORP, Inc. shows a P/E of 10.55, further supporting the notion that Willis Lease Finance is undervalued.
Despite recent underperformance, with a year-to-date return of -27.79% compared to the S&P 500's 12.22%, the long-term outlook is more promising, as evidenced by a 3-year return of 319.92% versus the S&P 500's 70.41%. This suggests that while short-term fluctuations have been challenging, the company's potential for growth remains strong.