Velocity FinancialVEL +0.98%68 Graham Number is $33.77 as of Mar. 2026, which is 4590% above its 10-year median of 0.72. GuruFocus rates VEL with a GF Score™ of 68/100 and a GF Value™ of $25.82 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,433 Banks companies, Velocity Financial ranks better than 78.44% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-01), the stock price of Velocity Financial is $18.64. Velocity Financial's graham number for the quarter that ended in Mar. 2026 was $33.77. Therefore, Velocity Financial's Price to Graham Number ratio for today is 0.55.
The historical rank and industry rank for Velocity Financial's Graham Number or its related term are showing as below:
VEL'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.44 Med: 0.72 Max: 0.96
Current: 0.55
During the past 10 years, the highest Price to Graham Number ratio of Velocity Financial was 0.96. The lowest was 0.44. And the median was 0.72.
VEL's Price-to-Graham-Number is ranked better than 78.44% of 1433
companies
in the Banks industry
Industry Median: 0.79
vs VEL: 0.55
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Velocity Financial (NYSE:VEL) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Velocity Financial's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
18.64
/
33.77
=
0.55
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Velocity Financial Graham Number Related Terms
Velocity Financial Graham Number Historical Data
* Premium members only.
The historical data trend for Velocity Financial's Graham Number 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 Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Velocity Financial's Price-to-Graham-Number 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 Graham Number of $33.77 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Velocity Financial and its competitors. This is 4590% above median its historical median of 0.72. Over the past decade, Velocity Financial's Graham Number has ranged from 0.44 to 0.96. According to the industry distribution chart, Velocity Financial ranks #309 out of 1433 companies in the Banks industry, placing it in the top 21.6%.
Is Velocity Financial's Graham Number too high?
Velocity Financial's current Graham Number of $33.77 is 4590% above median its 10-year median of 0.72. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 0.96. The Banks industry median Graham Number is 0.79. Velocity Financial's value of $33.77 is 4174.7% above this industry median. Based on the distribution chart, Velocity Financial ranks #309 out of 1433 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Velocity Financial has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Financial's Graham Number compare to UWMC and LDI?
According to the Banks industry distribution chart, Velocity Financial ranks #309 out of 1433 companies for Graham Number. This places Velocity Financial in the top 22% of its industry — outperforming the majority of peers. The industry median Graham Number is 0.79. Velocity Financial's value of $33.77 is 4174.7% above this benchmark. Historically, Velocity Financial's own Graham Number has ranged from 0.44 to 0.96 over the past decade. While the company's 10-year median is 0.72 vs. the industry median of 0.79, Velocity Financial 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 Graham Number for a Banks company?
The median Graham Number among Banks companies is 0.79, based on 1,433 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current Graham Number of $33.77 is 4174.7% 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 Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Velocity Financial and its competitors. For the Banks industry, the median Graham Number is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current Graham Number is $33.77, which is 4590% above median its own 10-year median of 0.72. 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 Modestly Undervalued. The stock's GF Value™ is $25.82, compared to a current price of $18.64 — trading 27.8% below its estimated fair value. The current Graham Number is $33.77, which is 4590% above median its 10-year median of 0.72 and 4174.7% above the Banks industry median of 0.79. 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 Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Velocity Financial (VEL), the current Graham Number is $33.77 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 Velocity Financial (VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Financial stock appears to be undervalued.
The current stock price of $18.64 is trading 27.8% below its estimated GF Value™ of $25.82.
GuruFocus considers Velocity Financial to be Modestly Undervalued.
Key valuation signals for VEL:
Graham Number: $33.77 (4590% above median its 10-year median of 0.72)
GF Value™: $25.82 vs. price of $18.64 (27.8% below fair value)
Industry Position: 4174.7% above the Banks median (#309 of 1433)
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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