VEL Valuation

Velocity Financial Inc

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19.080

+0.01(0.052%)1D

Overview
Forecast
Valuation
Earnings

VEL Relative Valuation

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. If the market price exceeds this fair value range, VEL is overvalued; if below, it's undervalued.

Historical Valuation

Velocity Financial Inc (VEL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.96 is considered Undervalued compared with the five-year average of 9.22. The fair price of Velocity Financial Inc (VEL) is between 67.98 to 75.84 according to relative valuation methord. Compared to the current price of 19.08 USD , Velocity Financial Inc is Undervalued By 71.93%.

Relative Value

Fair Zone

67.98-75.84

Current Price：19.08

71.93%

Undervalued

7.96

Trailing

Forward

0.00

EV/EBITDA

Velocity Financial Inc. (VEL) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

0.00

EV/EBIT

Velocity Financial Inc. (VEL) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.

3.76

Velocity Financial Inc. (VEL) has a current PS of 3.76. The 5-year average PS is 3.03. The thresholds are as follows: Strongly Undervalued below 1.58, Undervalued between 1.58 and 2.31, Fairly Valued between 3.76 and 2.31, Overvalued between 3.76 and 4.49, and Strongly Overvalued above 4.49. The current Forward PS of 3.76 falls within the Overvalued range.

0.00

P/OCF

Velocity Financial Inc. (VEL) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

Velocity Financial Inc. (VEL) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.01. The thresholds are as follows: Strongly Undervalued below -0.65, Undervalued between -0.65 and -0.32, Fairly Valued between 0.34 and -0.32, Overvalued between 0.34 and 0.68, and Strongly Overvalued above 0.68. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Velocity Financial Inc (VEL) has a current Price-to-Book (P/B) ratio of 1.22. Compared to its 3-year average P/B ratio of 1.11 , the current P/B ratio is approximately 10.39% higher. Relative to its 5-year average P/B ratio of 1.04, the current P/B ratio is about 18.01% higher. Velocity Financial Inc (VEL) has a Forward Free Cash Flow (FCF) yield of approximately 3.62%. Compared to its 3-year average FCF yield of 9.42%, the current FCF yield is approximately -61.52% lower. Relative to its 5-year average FCF yield of 11.61% , the current FCF yield is about -68.79% lower.

1.22

P/B

Median3y

1.11

Median5y

1.04

3.62

FCF Yield

Median3y

9.42

Median5y

11.61

Competitors Valuation Multiple

The average P/S ratio for VEL's competitors is 1.47, providing a benchmark for relative valuation. Velocity Financial Inc Corp (VEL) exhibits a P/S ratio of 3.76, which is 156.02% above the industry average. Given its robust revenue growth of 36.40%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

VEL.N

Velocity Financial Inc

Finance of America Companies Inc

Performance Decomposition

Market capitalization of VEL decreased by 2.70% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 89.54M to 122.13M.

The secondary factor is the Margin Expansion, contributed 30.43%to the performance.

Overall, the performance of VEL in the past 1 year is driven by Revenue Growth. Which is more sustainable.

36.40%

89.54M → 122.13M

Revenue Growth

30.43%

16.43 → 21.43

Margin Expansion

-69.53%

28.24 → 8.61

P/E Change

-2.70%