VEL (Velocity Financial) 5-Year Yield-on-Cost %: 0.00 (As of Jun. 30, 2026)


VEL Velocity Financial Inc VEL
68 GF Score
Price $18.01
GF Value $25.97
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Velocity Financial 5-Year Yield-on-Cost %?

Velocity Financial VEL -1.15% 68 5-Year Yield-on-Cost % is 0.00 as of Jun. 30, 2026. GuruFocus rates VEL with a GF Score™ of 68/100 and a GF Value™ of $25.97 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,256 Banks companies, Velocity Financial ranks worse than 79617.75% on this metric.

Velocity Financial's yield on cost for the quarter that ended in Mar. 2026 was 0.00.


The historical rank and industry rank for Velocity Financial's 5-Year Yield-on-Cost % or its related term are showing as below:



VEL's 5-Year Yield-on-Cost % is not ranked *
in the Banks industry.
Industry Median: 3.96
* Ranked among companies with meaningful 5-Year Yield-on-Cost % only.

Velocity Financial  (NYSE:VEL) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Velocity Financial 5-Year Yield-on-Cost % Related Terms


VEL vs UWMC, LDI, BETR: 5-Year Yield-on-Cost % Comparison

For the Mortgage Finance subindustry, Velocity Financial's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Banks Industry

For the Banks industry and Financial Services sector, Velocity Financial's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Velocity Financial's 5-Year Yield-on-Cost % falls into.


VEL
68GF Score
Velocity Financial Inc VEL
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
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Velocity Financial 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Velocity Financial is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 0.00 mean?
Velocity Financial (VEL) has a 5-Year Yield-on-Cost % of 0.00 as of Jun. 30, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Velocity Financial and its competitors. According to the industry distribution chart, Velocity Financial ranks #999999 out of 1256 companies in the Banks industry.
Is Velocity Financial's 5-Year Yield-on-Cost % too high?
Velocity Financial's current 5-Year Yield-on-Cost % is 0.00. Based on the distribution chart, Velocity Financial ranks #999999 out of 1256 companies in the Banks industry, which is in the bottom quartile 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 5-Year Yield-on-Cost % compare to UWMC and LDI?
According to the Banks industry distribution chart, Velocity Financial ranks #999999 out of 1256 companies for 5-Year Yield-on-Cost %. This places Velocity Financial in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.96. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.96, based on 1,256 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Velocity Financial and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current 5-Year Yield-on-Cost % is 0.00. 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 $25.97, compared to a current price of $18.01 — trading 30.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Velocity Financial (VEL), the current 5-Year Yield-on-Cost % is 0.00 as of Jun. 30, 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 $18.01 is trading 30.7% below its estimated GF Value™ of $25.97. GuruFocus considers Velocity Financial to be Significantly Undervalued.

Key valuation signals for VEL:

  • 5-Year Yield-on-Cost %: 0.00
  • GF Value™: $25.97 vs. price of $18.01 (30.7% below fair value)
  • GF Score™: 68/100 with 3 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

Get the complete analysis for VEL

5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$18.01
Price
$25.97
GF Value