RM PE Ratio & Valuation,Is RM Overvalued

RM Relative Valuation

RM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RM is overvalued; if below, it's undervalued.

Historical Valuation

Regional Management Corp (RM) is now in the Fair zone, suggesting that its current forward PE ratio of 6.88 is considered Fairly compared with the five-year average of 6.88. The fair price of Regional Management Corp (RM) is between 30.12 to 45.78 according to relative valuation methord.

Relative Value

Fair Zone

30.12-45.78

Current Price：39.88

Fair

6.88

11.17

EV/EBITDA

Regional Management Corp. (RM) has a current EV/EBITDA of 11.17. The 5-year average EV/EBITDA is 12.03. The thresholds are as follows: Strongly Undervalued below 9.01, Undervalued between 9.01 and 10.52, Fairly Valued between 13.54 and 10.52, Overvalued between 13.54 and 15.04, and Strongly Overvalued above 15.04. The current Forward EV/EBITDA of 11.17 falls within the Historic Trend Line -Fairly Valued range.

12.03

EV/EBIT

Regional Management Corp. (RM) has a current EV/EBIT of 12.03. The 5-year average EV/EBIT is 12.22. The thresholds are as follows: Strongly Undervalued below 8.00, Undervalued between 8.00 and 10.11, Fairly Valued between 14.33 and 10.11, Overvalued between 14.33 and 16.43, and Strongly Overvalued above 16.43. The current Forward EV/EBIT of 12.03 falls within the Historic Trend Line -Fairly Valued range.

0.57

Regional Management Corp. (RM) has a current PS of 0.57. The 5-year average PS is 0.68. The thresholds are as follows: Strongly Undervalued below 0.10, Undervalued between 0.10 and 0.39, Fairly Valued between 0.96 and 0.39, Overvalued between 0.96 and 1.25, and Strongly Overvalued above 1.25. The current Forward PS of 0.57 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Regional Management Corp. (RM) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.08. The thresholds are as follows: Strongly Undervalued below -0.65, Undervalued between -0.65 and -0.28, Fairly Valued between 0.45 and -0.28, Overvalued between 0.45 and 0.82, and Strongly Overvalued above 0.82. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Regional Management Corp. (RM) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.32. The thresholds are as follows: Strongly Undervalued below -2.47, Undervalued between -2.47 and -1.08, Fairly Valued between 1.71 and -1.08, Overvalued between 1.71 and 3.10, and Strongly Overvalued above 3.10. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Regional Management Corp (RM) has a current Price-to-Book (P/B) ratio of 1.06. Compared to its 3-year average P/B ratio of 0.88 , the current P/B ratio is approximately 20.08% higher. Relative to its 5-year average P/B ratio of 1.15, the current P/B ratio is about -8.23% higher. Regional Management Corp (RM) has a Forward Free Cash Flow (FCF) yield of approximately 73.99%. Compared to its 3-year average FCF yield of 83.84%, the current FCF yield is approximately -11.75% lower. Relative to its 5-year average FCF yield of 67.75% , the current FCF yield is about 9.20% lower.

1.06

P/B

Median3y

0.88

Median5y

1.15

73.99

FCF Yield

Median3y

83.84

Median5y

67.75

Competitors Valuation Multiple

The average P/S ratio for RM's competitors is 0.61, providing a benchmark for relative valuation. Regional Management Corp Corp (RM) exhibits a P/S ratio of 0.57, which is -6.67% above the industry average. Given its robust revenue growth of 13.09%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of RM increased by 18.93% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.24 to 8.68.

The secondary factor is the Revenue Growth, contributed 13.09%to the performance.

Overall, the performance of RM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

13.09%

146.34M → 165.49M

Revenue Growth

65.65%

5.24 → 8.68

Margin Expansion

-59.81%

24.14 → 9.70

P/E Change

18.93%

33.70 → 40.08

Mkt Cap Growth

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Frequently Asked Questions

Is Regional Management Corp (RM) currently overvalued or undervalued?

What is Regional Management Corp (RM) fair value?

RM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Regional Management Corp (RM) is between 30.12 to 45.78 according to relative valuation methord.

How does RM's valuation metrics compare to the industry average?

What is the current P/B ratio for Regional Management Corp (RM) as of Dec 15 2025?

As of Dec 15 2025, Regional Management Corp (RM) has a P/B ratio of 1.06. This indicates that the market values RM at 1.06 times its book value.

What is the current FCF Yield for Regional Management Corp (RM) as of Dec 15 2025?

As of Dec 15 2025, Regional Management Corp (RM) has a FCF Yield of 73.99%. This means that for every dollar of Regional Management Corp’s market capitalization, the company generates 73.99 cents in free cash flow.

What is the current Forward P/E ratio for Regional Management Corp (RM) as of Dec 15 2025?

As of Dec 15 2025, Regional Management Corp (RM) has a Forward P/E ratio of 6.88. This means the market is willing to pay $6.88 for every dollar of Regional Management Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Regional Management Corp (RM) as of Dec 15 2025?

As of Dec 15 2025, Regional Management Corp (RM) has a Forward P/S ratio of 0.57. This means the market is valuing RM at $0.57 for every dollar of expected revenue over the next 12 months.

RM Valuation