Velocity FinancialVEL +1.07%68 PE Ratio (TTM) is 6.40 as of Jun. 25, 2026, which is 39% below its 10-year median of 10.41. 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 1,441 Banks companies, Velocity Financial ranks better than 87.09% on this metric.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-06-25), Velocity Financial's share price is
$17.92.
Velocity Financial's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was $2.80. Therefore, Velocity Financial's PE Ratio (TTM) for today is 6.40.
Good Sign:
Velocity Financial Inc stock PE Ratio (=6.33) is close to 5-year low of 6.06.
The historical rank and industry rank for Velocity Financial's PE Ratio (TTM) or its related term are showing as below:
VEL'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 2.72 Med: 10.41 Max: 17
Current: 6.4
During the past 10 years, the highest PE Ratio (TTM) of Velocity Financial was 17.00. The lowest was 2.72. And the median was 10.41.
VEL's PE Ratio (TTM) is ranked better than 87.09% of 1441
companies
in the Banks industry
Industry Median: 11.64
vs VEL: 6.40
During the past 10 years, Velocity Financial's highest 3-Year average EPS without NRI Growth Rate was 32.90% per year. The lowest was 10.90% per year. And the median was 16.30% per year.
Velocity Financial's EPS (Basic) for the
three
months ended in Mar. 2026 was $0.57.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2026 was $2.81.
Velocity Financial (NYSE:VEL) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).
Velocity Financial PE Ratio (TTM) Related Terms
Velocity Financial PE Ratio (TTM) Historical Data
* Premium members only.
The historical data trend for Velocity Financial's PE Ratio (TTM) 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 PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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 PE Ratio (TTM) vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Velocity Financial's PE Ratio (TTM) falls into.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Velocity Financial's Share Price of today is $17.92.
Velocity Financial's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.80.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Velocity Financial (VEL) has a PE Ratio (TTM) of 6.40 as of Jun. 25, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Velocity Financial and its competitors. This is 39% below median its historical median of 10.41. Over the past decade, Velocity Financial's PE Ratio (TTM) has ranged from 2.72 to 17.00. According to the industry distribution chart, Velocity Financial ranks #186 out of 1441 companies in the Banks industry, placing it in the top 12.9%.
Is Velocity Financial's PE Ratio (TTM) too high?
Velocity Financial's current PE Ratio (TTM) of 6.40 is 39% below median its 10-year median of 10.41. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 17.00. The Banks industry median PE Ratio (TTM) is 11.64. Velocity Financial's value of 6.40 is 45% below this industry median. Based on the distribution chart, Velocity Financial ranks #186 out of 1441 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 PE Ratio (TTM) compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #186 out of 1441 companies for PE Ratio (TTM). This places Velocity Financial in the top 13% of its industry — outperforming the majority of peers. The industry median PE Ratio (TTM) is 11.64. Velocity Financial's value of 6.40 is 45% below this benchmark. Historically, Velocity Financial's own PE Ratio (TTM) has ranged from 2.72 to 17.00 over the past decade. While the company's 10-year median is 10.41 vs. the industry median of 11.64, 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 PE Ratio (TTM) for a Banks company?
The median PE Ratio (TTM) among Banks companies is 11.64, based on 1,441 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current PE Ratio (TTM) of 6.40 is 45% 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 PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Velocity Financial and its competitors. For the Banks industry, the median PE Ratio (TTM) is 11.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current PE Ratio (TTM) is 6.40, which is 39% below median its own 10-year median of 10.41. 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 PE Ratio (TTM) is 6.40, which is 39% below median its 10-year median of 10.41 and 45% below the Banks industry median of 11.64. 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 PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For Velocity Financial (VEL), the current PE Ratio (TTM) is 6.40 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:
PE Ratio (TTM): 6.40 (39% below median its 10-year median of 10.41)
GF Value™: $25.93 vs. price of $17.92 (30.9% below fair value)
Industry Position: 45% below the Banks median (#186 of 1441)
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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PE Ratio (TTM) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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