Velocity FinancialVEL +1.07%68 PEG Ratio is 0.58 as of Jun. 25, 2026, which is 44% below its 10-year median of 1.03. 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 1,229 Banks companies, Velocity Financial ranks better than 83.56% on this metric.
PE Ratio without NRI / 5-Year Book Value Growth Rate*
* The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Velocity Financial's PEG Ratio or its related term are showing as below:
VEL'
s PEG Ratio Range Over the Past 10 Years
Min: 0.55 Med: 1.03 Max: 1.32
Current: 0.58
During the past 10 years, Velocity Financial's highest PEG Ratio was 1.32. The lowest was 0.55. And the median was 1.03.
VEL's PEG Ratio is ranked better than 83.56% of 1229
companies
in the Banks industry
Industry Median: 1.51
vs VEL: 0.58
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Velocity Financial (NYSE:VEL) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Velocity Financial PEG Ratio Related Terms
Velocity Financial PEG Ratio Historical Data
* Premium members only.
The historical data trend for Velocity Financial's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Velocity Financial's PEG Ratio 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.
* Note: The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Velocity Financial (VEL) has a PEG Ratio of 0.58 as of Jun. 25, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Velocity Financial and its competitors. This is 44% below median its historical median of 1.03. Over the past decade, Velocity Financial's PEG Ratio has ranged from 0.55 to 1.32. According to the industry distribution chart, Velocity Financial ranks #202 out of 1229 companies in the Banks industry, placing it in the top 16.4%.
Is Velocity Financial's PEG Ratio too high?
Velocity Financial's current PEG Ratio of 0.58 is 44% below median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 1.32. The Banks industry median PEG Ratio is 1.51. Velocity Financial's value of 0.58 is 61.6% below this industry median. Based on the distribution chart, Velocity Financial ranks #202 out of 1229 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 Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Financial's PEG Ratio compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #202 out of 1229 companies for PEG Ratio. This places Velocity Financial in the top 16% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.51. Velocity Financial's value of 0.58 is 61.6% below this benchmark. Historically, Velocity Financial's own PEG Ratio has ranged from 0.55 to 1.32 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 1.51, 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 PEG Ratio for a Banks company?
The median PEG Ratio among Banks companies is 1.51, based on 1,229 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current PEG Ratio of 0.58 is 61.6% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Velocity Financial and its competitors. For the Banks industry, the median PEG Ratio is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current PEG Ratio is 0.58, which is 44% below median its own 10-year median of 1.03. 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 $17.92 — trading 30.9% below its estimated fair value. The current PEG Ratio is 0.58, which is 44% below median its 10-year median of 1.03 and 61.6% below the Banks industry median of 1.51. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Velocity Financial (VEL), the current PEG Ratio is 0.58 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 $17.92 is trading 30.9% below its estimated GF Value™ of $25.93.
GuruFocus considers Velocity Financial to be Significantly Undervalued.
Key valuation signals for VEL:
PEG Ratio: 0.58 (44% below median its 10-year median of 1.03)
GF Value™: $25.93 vs. price of $17.92 (30.9% below fair value)
Industry Position: 61.6% below the Banks median (#202 of 1229)
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
Get the complete analysis for VEL
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