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 7.43 is considered Undervalued compared with the five-year average of 9.19. The fair price of Velocity Financial Inc (VEL) is between 20.89 to 29.30 according to relative valuation methord. Compared to the current price of 18.97 USD , Velocity Financial Inc is Undervalued By 9.18%.
Relative Value
Fair Zone
20.89-29.30
Current Price：18.97
9.18%
Undervalued
7.43
PE
1Y
3Y
5Y
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.
3.34
PS
Velocity Financial Inc. (VEL) has a current PS of 3.34. The 5-year average PS is 3.13. The thresholds are as follows: Strongly Undervalued below 1.92, Undervalued between 1.92 and 2.52, Fairly Valued between 3.74 and 2.52, Overvalued between 3.74 and 4.35, and Strongly Overvalued above 4.35. The current Forward PS of 3.34 falls within the Historic Trend Line -Fairly Valued 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 1.16. Compared to its 3-year average P/B ratio of 1.12 , the current P/B ratio is approximately 3.45% higher. Relative to its 5-year average P/B ratio of 1.07, the current P/B ratio is about 8.67% higher. Velocity Financial Inc (VEL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.16%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 13.13% , the current FCF yield is about -100.00% lower.
1.16
P/B
Median3y
1.12
Median5y
1.07
7.39
FCF Yield
Median3y
9.16
Median5y
13.13
Competitors Valuation Multiple
The average P/S ratio for VEL's competitors is , providing a benchmark for relative valuation. Velocity Financial Inc Corp (VEL) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -59.94%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of VEL decreased by 3.02% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.85 to 64.38.
The secondary factor is the Revenue Growth, contributed -59.94%to the performance.
Overall, the performance of VEL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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