Latest Ratios: P/E Ratio 6.5x · EV/EBITDA 13.9x · ROE 17.6%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $707M | $793M | $699M | $594M | $329M | $466M | $125M | — | — | — | — |
| Enterprise Value | $7.2B | $7.2B | $5.5B | $4.4B | $3.6B | $2.8B | $1.8B | — | — | — | — |
| P/E Ratio → | 6.55 | 7.55 | 10.24 | 11.33 | 10.38 | 15.93 | — | — | — | — | — |
| P/S Ratio | 0.99 | 1.11 | 1.45 | 4.51 | 1.33 | 2.57 | 0.75 | — | — | — | — |
| P/B Ratio | 1.02 | 1.17 | 1.34 | 1.36 | 0.87 | 1.35 | 0.57 | — | — | — | — |
| P/FCF | 39.52 | 44.33 | 18.67 | 9.75 | 6.81 | 8.13 | 2.35 | — | — | — | — |
| P/OCF | 38.91 | 43.64 | 18.53 | 9.73 | 6.77 | 8.08 | 2.28 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.13 | 11.41 | 33.37 | 14.34 | 15.47 | 11.10 | — | — | — | — |
| EV / EBITDA | 13.93 | 14.10 | 55.99 | 55.53 | 76.30 | 66.47 | 71.99 | — | — | — | — |
| EV / EBIT | 13.99 | 14.16 | 57.15 | — | 79.93 | 70.50 | 79.60 | — | — | — | — |
| EV / FCF | — | 404.81 | 147.03 | 72.20 | 73.65 | 48.96 | 34.53 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 95.3% | 95.3% | 43.6% | 100.0% | 36.2% | 41.7% | 36.7% | 34.8% | 37.4% | 35.0% | 30.7% |
| Operating Margin | 71.6% | 71.6% | 20.0% | 58.3% | 17.9% | 21.9% | 13.9% | 16.6% | 15.8% | 14.7% | 9.0% |
| Net Profit Margin | 14.7% | 14.7% | 14.2% | 39.7% | 13.0% | 16.1% | 10.7% | 11.3% | 6.3% | 14.7% | 9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.6% | 17.6% | 14.3% | 12.8% | 8.9% | 10.4% | 9.5% | 10.9% | 5.2% | 1.3% | 0.3% |
| ROA | 1.6% | 1.6% | 1.4% | 1.3% | 1.0% | 1.2% | 0.8% | 0.9% | 0.5% | 1.1% | 0.6% |
| ROIC | 6.1% | 6.1% | 1.5% | 1.5% | 1.0% | 1.3% | 0.8% | 1.0% | 1.0% | 0.5% | — |
| ROCE | 8.6% | 8.6% | 2.1% | 2.1% | 1.6% | 1.6% | 1.3% | 1.5% | 1.3% | 6.4% | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 9.68 | 9.68 | 9.34 | 8.79 | 8.61 | 6.90 | 7.88 | 13.12 | 9.46 | 9.12 | 0.51 |
| Debt / EBITDA | 12.74 | 12.74 | 49.39 | 48.54 | 70.22 | 56.29 | 67.64 | 71.98 | 74.71 | 78.67 | 143.27 |
| Net Debt / Equity | — | 9.54 | 9.24 | 8.70 | 8.49 | 6.79 | 7.81 | 12.98 | 9.37 | 9.00 | 0.48 |
| Net Debt / EBITDA | 12.56 | 12.56 | 48.88 | 48.03 | 69.25 | 55.44 | 67.10 | 71.17 | 73.94 | 77.62 | 136.19 |
| Debt / FCF | — | 360.48 | 128.36 | 62.45 | 66.84 | 40.84 | 32.18 | — | — | 34.09 | 37.08 |
| Interest Coverage | 1.40 | 1.40 | 0.39 | -0.01 | 0.28 | 0.38 | 0.23 | 0.26 | 0.25 | 0.23 | 0.13 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.63 | 0.63 | 0.43 | 0.36 | 0.34 | — | 0.73 | 0.19 | 2.57 | 0.48 | 0.03 |
| Quick Ratio | 0.63 | 0.63 | 0.43 | 0.36 | 0.34 | — | 0.73 | 0.19 | 2.57 | 0.48 | 0.03 |
| Cash Ratio | 0.19 | 0.19 | 0.10 | 0.09 | 0.11 | — | 0.10 | 0.05 | 0.56 | 0.15 | 0.03 |
| Asset Turnover | — | 0.10 | 0.09 | 0.03 | 0.07 | 0.06 | 0.08 | 0.07 | 0.07 | 0.07 | 0.07 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 15.3% | 13.2% | 9.8% | 8.8% | 9.6% | 6.3% | — | — | — | — | — |
| FCF Yield | 2.5% | 2.3% | 5.4% | 10.3% | 14.7% | 12.3% | 42.6% | — | — | — | — |
| Buyback Yield | 1.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 1.0% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $38M | $36M | $34M | $34M | $34M | $20M | $114M | $12M | $12M | $12M |
Securitization market liquidity dependency
Based on recent market data, VEL trades at a P/E of 6.63x, which appears to discount the firm's growth trajectory relative to peers, suggesting investors remain wary of the sustainability of earnings in a high-rate environment where securitization spreads remain the primary determinant of long-term value.
The current valuation multiple suggests the market is pricing VEL as a cyclical financial services firm rather than a high-growth lender. Investors should monitor whether the forward P/E of 6.72x reflects a realistic expectation of earnings stability or if the market is anticipating a contraction in origination volumes.
As reported in financial statements, VEL's ROIC has struggled to maintain positive momentum, fluctuating between -0.1% and 2.6% over the last ten quarters, which indicates that the firm's ability to generate returns on invested capital is heavily hampered by its reliance on expensive, debt-funded growth strategies.
The low ROIC suggests that the company is not yet effectively compounding capital, as the cost of its securitized debt likely offsets the yields generated from its small-balance loan portfolio. This trend warrants investigation into whether management can improve operational efficiency or if the current business model is structurally limited by its high-touch, manual underwriting requirements.
According to quarterly filings, VEL's DSO has shown significant volatility, ranging from 22 to 66 days, which highlights the inherent difficulty in managing cash conversion cycles within a business model that relies on the timing of loan originations and the subsequent execution of securitization transactions.
The lack of consistent DIO and DPO data suggests that the company's efficiency is primarily driven by the velocity of its loan sales rather than traditional inventory management. Investors should monitor these fluctuations as they may indicate potential bottlenecks in the firm's ability to recycle capital during periods of market stress.
Based on reported figures, VEL's debt-to-equity ratio reached a peak of 9.68x in 2025Q4, indicating a highly leveraged balance sheet that leaves the firm with minimal margin for error should credit spreads widen or the demand for its securitized assets experience a sudden, sharp decline.
The interest coverage ratio, which has dipped as low as 0.33x, suggests that debt service is becoming increasingly uncomfortable, potentially limiting the firm's ability to navigate a prolonged high-interest-rate environment. This leverage profile appears to be the primary risk factor for shareholders, as it amplifies the impact of any credit losses on the company's equity base.
The price-to-book ratio is frequently misapplied to VEL, as it fails to account for the significant non-cash fair value adjustments inherent in mortgage finance, which can artificially inflate or deflate the reported equity base and obscure the true economic value of the firm's retained loan portfolio.
Investors should instead focus on 'Distributable Earnings' or 'Core Earnings' to better assess the firm's underlying profitability, as these metrics strip away the volatility of mark-to-market accounting. Relying on P/B in this context may lead to an incorrect assessment of the company's valuation relative to its actual cash-generating capacity.
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying VEL stock.
Velocity Financial, Inc.'s current P/E ratio is 6.5x. The historical average is 11.1x.
Velocity Financial, Inc.'s current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 56.7x.
Velocity Financial, Inc.'s return on equity (ROE) is 17.6%. The historical average is 9.1%.
Based on historical data, Velocity Financial, Inc. is trading at a P/E of 6.5x. Compare with industry peers and growth rates for a complete picture.
Velocity Financial, Inc. has 95.3% gross margin and 71.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Velocity Financial, Inc.'s Debt/EBITDA ratio is 12.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.