Is World Acceptance Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for World Acceptance Corp. has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 10, an EV to EBITDA of 2.56, and a PEG ratio of 0.39, which suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, World Acceptance Corp. has a P/E ratio lower than Enova International, Inc. at 14.65 and slightly higher than Textainer Group Holdings Ltd. at 10.08, both of which are also considered attractive. Despite the recent grade change, the company has outperformed the S&P 500 with a year-to-date return of 55.75% compared to the index's 12.22%, reinforcing its strong performance relative to the broader market.