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Velocity FinancialVEL +0.57%69 Shiller PE Ratio is 16.49 as of Aug. 04, 2026, which is 7% below its 10-year median of 17.78. GuruFocus rates VEL with a GF Score™ of 69/100 and a GF Value™ of $24.76 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,236 Banks companies, Velocity Financial ranks worse than 64.24% on this metric.
The historical rank and industry rank for Velocity Financial's Shiller PE Ratio or its related term are showing as below:
VEL'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 16.13 Med: 17.78 Max: 19.15
Current: 16.42
During the past 10 years, Velocity Financial's highest Shiller PE Ratio was 19.15. The lowest was 16.13. And the median was 17.78.
VEL's Shiller PE Ratio is ranked worse than 64.24% of 1236
companies
in the Banks industry
Industry Median: 13.985
vs VEL: 16.42
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Velocity Financial's adjusted earnings per share data of for the fiscal year that ended in Dec25 was $2.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.07 for the trailing ten years ended in Dec25.
Shiller PE for Stocks: The True Measure of Stock Valuation
Velocity Financial (NYSE:VEL) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Velocity Financial Shiller PE Ratio Related Terms
Velocity Financial Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Velocity Financial's Shiller PE 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.
VEL vs UWMC, LDI, BETR: Shiller PE Ratio Comparison
For the Mortgage Finance subindustry, Velocity Financial's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Velocity Financial's Shiller PE Ratio falls into.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Velocity Financial (VEL) has a Shiller PE Ratio of 16.49 as of Aug. 04, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Velocity Financial and its competitors. This is near median its historical median of 17.78. Over the past decade, Velocity Financial's Shiller PE Ratio has ranged from 16.13 to 19.15. According to the industry distribution chart, Velocity Financial ranks #794 out of 1236 companies in the Banks industry, placing it in the top 64.2%.
Is Velocity Financial's Shiller PE Ratio too high?
Velocity Financial's current Shiller PE Ratio of 16.49 is near median its 10-year median of 17.78. Over the past 10 years, this metric has ranged from a low of 16.13 to a high of 19.15. The Banks industry median Shiller PE Ratio is 13.99. Velocity Financial's value of 16.49 is 17.9% above this industry median. Based on the distribution chart, Velocity Financial ranks #794 out of 1236 companies in the Banks industry, which is below the industry midpoint. Overall, Velocity Financial has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Financial's Shiller PE Ratio compare to UWMC and LDI?
According to the Banks industry distribution chart, Velocity Financial ranks #794 out of 1236 companies for Shiller PE Ratio. This places Velocity Financial in the lower half of its industry. The industry median Shiller PE Ratio is 13.99. Velocity Financial's value of 16.49 is 17.9% above this benchmark. Historically, Velocity Financial's own Shiller PE Ratio has ranged from 16.13 to 19.15 over the past decade. While the company's 10-year median is 17.78 vs. the industry median of 13.99, 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 Shiller PE Ratio for a Banks company?
The median Shiller PE Ratio among Banks companies is 13.99, based on 1,236 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current Shiller PE Ratio of 16.49 is 17.9% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Velocity Financial and its competitors. For the Banks industry, the median Shiller PE Ratio is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current Shiller PE Ratio is 16.49, which is near median its own 10-year median of 17.78. 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 $24.76, compared to a current price of $17.64 — trading 28.8% below its estimated fair value. The current Shiller PE Ratio is 16.49, which is near median its 10-year median of 17.78 and 17.9% above the Banks industry median of 13.99. Velocity Financial's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Velocity Financial (VEL), the current Shiller PE Ratio is 16.49 as of Aug. 04, 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 $17.64 is trading 28.8% below its estimated GF Value™ of $24.76.
GuruFocus considers Velocity Financial to be Modestly Undervalued.
Key valuation signals for VEL:
Shiller PE Ratio: 16.49 (near median its 10-year median of 17.78)
GF Value™: $24.76 vs. price of $17.64 (28.8% below fair value)
Industry Position: 17.9% above the Banks median (#794 of 1236)
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.
69GF Score
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