Is World Acceptance Corp. overvalued or undervalued?

As of 18 June 2025, the valuation grade for World Acceptance Corp. has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 10, significantly lower than its peer AdaptHealth Corp., which has a P/E of 12.72. Additionally, World Acceptance Corp. boasts an impressive ROCE of 75.37% and a PEG ratio of 0.39, suggesting strong growth potential relative to its price.
In comparison to its peers, World Acceptance Corp. shows a favorable EV to EBITDA ratio of 2.56 against AdaptHealth's 4.70, reinforcing its attractive valuation. Despite the recent stock performance, where it outperformed the S&P 500 with a YTD return of 39.03% compared to the index's 2.44%, the company's current metrics indicate that it remains undervalued in the market.