Velocity FinancialVEL +0.93%68 FCF Yield % is 3.55 as of Jun. 25, 2026, which is 55% below its 10-year median of 7.94. GuruFocus rates VEL with a GF Score™ of 68/100 and a GF Value™ of $25.93 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,504 Banks companies, Velocity Financial ranks worse than 66.29% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Velocity Financial FCF Yield % Related Terms
Velocity Financial FCF Yield % Historical Data
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The historical data trend for Velocity Financial's FCF Yield % can be seen below:
* 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, Velocity Financial's FCF Yield %, along with its competitors' market caps and FCF Yield % 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.
Velocity Financial FCF Yield % vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Velocity Financial's FCF Yield % 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.
Velocity Financial (VEL) has a FCF Yield % of 3.55 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Velocity Financial and its competitors. This is 55% below median its historical median of 7.94. According to the industry distribution chart, Velocity Financial ranks #997 out of 1504 companies in the Banks industry, placing it in the top 66.3%.
Is Velocity Financial's FCF Yield % too high?
Velocity Financial's current FCF Yield % of 3.55 is 55% below median its 10-year median of 7.94. The Banks industry median FCF Yield % is 8.24. Velocity Financial's value of 3.55 is 56.9% below this industry median. Based on the distribution chart, Velocity Financial ranks #997 out of 1504 companies in the Banks industry, which is below the industry midpoint. Overall, Velocity Financial has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Financial's FCF Yield % compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #997 out of 1504 companies for FCF Yield %. This places Velocity Financial in the lower half of its industry. The industry median FCF Yield % is 8.24. Velocity Financial's value of 3.55 is 56.9% below this benchmark. While the company's 10-year median is 7.94 vs. the industry median of 8.24, Velocity Financial has consistently been below 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 FCF Yield % for a Banks company?
The median FCF Yield % among Banks companies is 8.24, based on 1,504 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current FCF Yield % of 3.55 is 56.9% below 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Velocity Financial and its competitors. For the Banks industry, the median FCF Yield % is 8.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current FCF Yield % is 3.55, which is 55% below median its own 10-year median of 7.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velocity Financial stock overvalued right now?
Based on GuruFocus' analysis, Velocity Financial (VEL) is currently considered Significantly Undervalued. The stock's GF Value™ is $25.93, compared to a current price of $17.90 — trading 31% below its estimated fair value. The current FCF Yield % is 3.55, which is 55% below median its 10-year median of 7.94 and 56.9% below the Banks industry median of 8.24. Velocity Financial's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Velocity Financial (VEL), the current FCF Yield % is 3.55 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 Velocity Financial (VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Financial stock appears to be undervalued.
The current stock price of $17.90 is trading 31% below its estimated GF Value™ of $25.93.
GuruFocus considers Velocity Financial to be Significantly Undervalued.
Key valuation signals for VEL:
FCF Yield %: 3.55 (55% below median its 10-year median of 7.94)
GF Value™: $25.93 vs. price of $17.90 (31% below fair value)
Industry Position: 56.9% below the Banks median (#997 of 1504)
No single metric tells the full story. See the VEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velocity Financial Inc is a United States-based real estate finance company. Company operates in a large fragmented market with substantial demand for financing and limited supply of institutional financing alternative The company originates and manages investor loans secured by residential rental and small commercial properties. The company earns revenue in the form of interest income. It operates in New York, California, Florida, New Jersey, and other states.
68GF Score
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