PennyMac Financial ServicesPFSI +1.26%71 Debt-to-EBITDA is 52.53 as of Mar. 2026, which is 266% above its 10-year median of 14.35. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $132.87 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 32 Banks companies, PennyMac Financial Services ranks worse than 93.75% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for PennyMac Financial Services's Debt-to-EBITDA or its related term are showing as below:
PFSI'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.32 Med: 14.35 Max: 43.52
Current: 41.4
During the past 13 years, the highest Debt-to-EBITDA Ratio of PennyMac Financial Services was 43.52. The lowest was 4.32. And the median was 14.35.
PFSI's Debt-to-EBITDA is ranked worse than 93.75% of 32
companies
in the Banks industry
Industry Median: 10.205
vs PFSI: 41.40
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
PennyMac Financial Services Debt-to-EBITDA Related Terms
PennyMac Financial Services Debt-to-EBITDA Historical Data
* 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 Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
PennyMac Financial Services (PFSI) has a Debt-to-EBITDA of 52.53 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PennyMac Financial Services. This is 266% above median its historical median of 14.35. Over the past decade, PennyMac Financial Services' Debt-to-EBITDA has ranged from 4.32 to 43.52. According to the industry distribution chart, PennyMac Financial Services ranks #30 out of 32 companies in the Banks industry, placing it in the top 93.7%.
Is PennyMac Financial Services' Debt-to-EBITDA too high?
PennyMac Financial Services' current Debt-to-EBITDA of 52.53 is 266% above median its 10-year median of 14.35. Over the past 10 years, this metric has ranged from a low of 4.32 to a high of 43.52. The Banks industry median Debt-to-EBITDA is 10.21. PennyMac Financial Services' value of 52.53 is 414.7% above this industry median. Based on the distribution chart, PennyMac Financial Services ranks #30 out of 32 companies in the Banks industry, which is in the bottom quartile relative to peers. 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' Debt-to-EBITDA compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #30 out of 32 companies for Debt-to-EBITDA. This places PennyMac Financial Services in the lower half of its industry. The industry median Debt-to-EBITDA is 10.21. PennyMac Financial Services' value of 52.53 is 414.7% above this benchmark. Historically, PennyMac Financial Services' own Debt-to-EBITDA has ranged from 4.32 to 43.52 over the past decade. While the company's 10-year median is 14.35 vs. the industry median of 10.21, PennyMac Financial Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Banks company?
The median Debt-to-EBITDA among Banks companies is 10.21, based on 32 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current Debt-to-EBITDA of 52.53 is 414.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PennyMac Financial Services. For the Banks industry, the median Debt-to-EBITDA is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current Debt-to-EBITDA is 52.53, which is 266% above median its own 10-year median of 14.35. 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 $132.87, compared to a current price of $81.94 — trading 38.3% below its estimated fair value. The current Debt-to-EBITDA is 52.53, which is 266% above median its 10-year median of 14.35 and 414.7% above the Banks industry median of 10.21. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Debt-to-EBITDA is 52.53 as of Mar. 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 $81.94 is trading 38.3% below its estimated GF Value™ of $132.87.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Debt-to-EBITDA: 52.53 (266% above median its 10-year median of 14.35)
GF Value™: $132.87 vs. price of $81.94 (38.3% below fair value)
Industry Position: 414.7% above the Banks median (#30 of 32)
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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