3 models fit PennyMac Financial Services Inc. Common Stock and they disagree: 0 of 3 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Bronze40
Valued as a bank: Residual income, P/E comparison, Dividend discount, and Graham number.
ACCE opinionPennyMac Financial Services Inc. Common Stock (PFSI)
Fair value (3 models)
$90.64
ACCE price target
$62.00
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 11:06 CEST; previously $88.17 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $63.68 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison, Graham number, and Residual income.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
29.7% below
+42.3% to fair value
ACCE score
36
out of 100
Analysts
50% buy
8 covering
P/E
8.2x
forward 9.0x
1-year return
-50.5%
Dividend yield
2.02%
PennyMac Financial Services Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
PennyMac Financial Services (PFSI) earns its revenue mainly from mortgage production and servicing, with its PennyMac Loan Services unit collecting fees on a large servicing book and its PennyMac Mortgage Investment Trust arm holding mortgage-related investments. The business is a mortgage originator and servicer rather than a bank, so its earnings swing with rate cycles and the value of its servicing rights. At an 8.2x trailing P/E and 9.0x forward P/E, the market is pricing it as a cyclical lender, and the 9.4% ROE and 4.5% operating margin suggest the stock is not cheap on fundamentals alone. Revenue growth of 1.8% is weak, so any case here rests on a mortgage-rate recovery or a reset in servicing economics rather than organic expansion. The stock's 38/100 score and absence from major indexes put it in the category worth a deeper look only if you have a view on the rate cycle.