VEL (Velocity Financial) 1-Year Sharpe Ratio: -0.05 (As of Jul. 06, 2026)


VEL Velocity Financial Inc VEL
68 GF Score
Price $18.54
GF Value $25.67
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Velocity Financial 1-Year Sharpe Ratio?

Velocity Financial VEL -0.16% 68 1-Year Sharpe Ratio is -0.05 as of Jul. 06, 2026. GuruFocus rates VEL with a GF Score™ of 68/100 and a GF Value™ of $25.67 (Modestly Undervalued). The stock has 4 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-06), Velocity Financial's 1-Year Sharpe Ratio is -0.05.

Velocity Financial  (NYSE:VEL) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Velocity Financial 1-Year Sharpe Ratio Related Terms

VEL vs UWMC, LDI, BETR: 1-Year Sharpe Ratio Comparison

For the Mortgage Finance subindustry, Velocity Financial's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Banks Industry

For the Banks industry and Financial Services sector, Velocity Financial's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Velocity Financial's 1-Year Sharpe Ratio falls into.


VEL
68GF Score
Velocity Financial Inc VEL
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Velocity Financial 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of -0.05 mean?
Velocity Financial (VEL) has a 1-Year Sharpe Ratio of -0.05 as of Jul. 06, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Velocity Financial and its competitors.
Is Velocity Financial's 1-Year Sharpe Ratio too high?
Velocity Financial's current 1-Year Sharpe Ratio is -0.05. 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 1-Year Sharpe Ratio compare to UWMC and LDI?
Velocity Financial's 1-Year Sharpe Ratio of -0.05 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Banks company?
A good 1-Year Sharpe Ratio depends on the Banks industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Velocity Financial and its competitors. Velocity Financial's current 1-Year Sharpe Ratio is -0.05. 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 $25.67, compared to a current price of $18.54 — trading 27.8% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.05. Velocity Financial's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Velocity Financial (VEL), the current 1-Year Sharpe Ratio is -0.05 as of Jul. 06, 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 $18.54 is trading 27.8% below its estimated GF Value™ of $25.67. GuruFocus considers Velocity Financial to be Modestly Undervalued.

Key valuation signals for VEL:

  • 1-Year Sharpe Ratio: -0.05
  • GF Value™: $25.67 vs. price of $18.54 (27.8% below fair value)
  • GF Score™: 68/100 with 4 warning signs

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 Business Description

Address 2945 Townsgate Road, Suite 110, Westlake Village, CA, USA, 91361
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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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$18.54
Price
$25.67
GF Value