Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-25), PennyMac Financial Services's Beta is 1.1477.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Mortgage Finance subindustry, PennyMac Financial Services's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PennyMac Financial Services Beta vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Beta distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
PennyMac Financial Services (PFSI) has a Beta of 1.1477 as of Jun. 25, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for PennyMac Financial Services and its competitors.
Is PennyMac Financial Services' Beta too high?
PennyMac Financial Services' current Beta is 1.1477. Overall, PennyMac Financial Services has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PennyMac Financial Services' Beta compare to FMCC and WD?
PennyMac Financial Services' Beta of 1.1477 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Banks company?
A good Beta depends on the Banks industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for PennyMac Financial Services and its competitors. PennyMac Financial Services's current Beta is 1.1477. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PennyMac Financial Services stock overvalued right now?
Based on GuruFocus' analysis, PennyMac Financial Services (PFSI) is currently considered Possible Value Trap. The stock's GF Value™ is $137.55, compared to a current price of $83.35 — trading 39.4% below its estimated fair value. The current Beta is 1.1477. PennyMac Financial Services' overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Beta is 1.1477 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PennyMac Financial Services (PFSI) Overvalued in 2026?
Based on GuruFocus' analysis, PennyMac Financial Services stock appears to be undervalued.
The current stock price of $83.35 is trading 39.4% below its estimated GF Value™ of $137.55.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Beta: 1.1477
GF Value™: $137.55 vs. price of $83.35 (39.4% below fair value)
No single metric tells the full story. See the PFSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PennyMac Financial Services Inc is a specialty financial services firm with a comprehensive mortgage platform mainly focused on the production and servicing of U.S. residential mortgage loans. The firm is also engaged in managing investments related to the U.S. mortgage market and provides products and services that leverage technologies to support customers. The company operates through two reportable operating segments: production and servicing. The production segment performs loan origination, acquisition, and sale activities, while the servicing segment performs servicing and subservicing of loans, early buyout transactions, and servicing of loans sourced and managed for PMT. The majority of revenue comes from the production segment.
71GF Score
Get the complete analysis for PFSI
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