Historical Valuation
Velocity Financial Inc (VEL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.65 is considered Undervalued compared with the five-year average of 9.18. The fair price of Velocity Financial Inc (VEL) is between 19.99 to 28.03 according to relative valuation methord. Compared to the current price of 18.62 USD , Velocity Financial Inc is Undervalued By 6.86%.
Relative Value
Fair Zone
19.99-28.03
Current Price：18.62
6.86%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Velocity Financial Inc (VEL) has a current Price-to-Book (P/B) ratio of 1.20. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately 5.52% higher. Relative to its 5-year average P/B ratio of 1.08, the current P/B ratio is about 10.82% higher. Velocity Financial Inc (VEL) has a Forward Free Cash Flow (FCF) yield of approximately 7.31%. Compared to its 3-year average FCF yield of 9.07%, the current FCF yield is approximately -19.35% lower. Relative to its 5-year average FCF yield of 13.00% , the current FCF yield is about -43.72% lower.
P/B
Median3y
1.14
Median5y
1.08
FCF Yield
Median3y
9.07
Median5y
13.00
Competitors Valuation Multiple
AI Analysis for VEL
The average P/S ratio for VEL competitors is 1.05, providing a benchmark for relative valuation. Velocity Financial Inc Corp (VEL.N) exhibits a P/S ratio of 3.38, which is 223.12% above the industry average. Given its robust revenue growth of -59.94%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for VEL
1Y
3Y
5Y
Market capitalization of VEL increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of VEL in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is VEL currently overvalued or undervalued?
Velocity Financial Inc (VEL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.65 is considered Undervalued compared with the five-year average of 9.18. The fair price of Velocity Financial Inc (VEL) is between 19.99 to 28.03 according to relative valuation methord. Compared to the current price of 18.62 USD , Velocity Financial Inc is Undervalued By 6.86% .
What is Velocity Financial Inc (VEL) fair value?
VEL'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 Velocity Financial Inc (VEL) is between 19.99 to 28.03 according to relative valuation methord.
How does VEL's valuation metrics compare to the industry average?
The average P/S ratio for VEL's competitors is 1.05, providing a benchmark for relative valuation. Velocity Financial Inc Corp (VEL) exhibits a P/S ratio of 3.38, which is 223.12% above the industry average. Given its robust revenue growth of -59.94%, this premium appears unsustainable.
What is the current P/B ratio for Velocity Financial Inc (VEL) as of Jan 11 2026?
As of Jan 11 2026, Velocity Financial Inc (VEL) has a P/B ratio of 1.20. This indicates that the market values VEL at 1.20 times its book value.
What is the current FCF Yield for Velocity Financial Inc (VEL) as of Jan 11 2026?
As of Jan 11 2026, Velocity Financial Inc (VEL) has a FCF Yield of 7.31%. This means that for every dollar of Velocity Financial Inc’s market capitalization, the company generates 7.31 cents in free cash flow.
What is the current Forward P/E ratio for Velocity Financial Inc (VEL) as of Jan 11 2026?
As of Jan 11 2026, Velocity Financial Inc (VEL) has a Forward P/E ratio of 7.65. This means the market is willing to pay $7.65 for every dollar of Velocity Financial Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Velocity Financial Inc (VEL) as of Jan 11 2026?
As of Jan 11 2026, Velocity Financial Inc (VEL) has a Forward P/S ratio of 3.38. This means the market is valuing VEL at $3.38 for every dollar of expected revenue over the next 12 months.