2 models fit Walker & Dunlop Inc Common Stock and they agree: 2 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)
Valued as a bank: Residual income, P/E comparison, and Graham number.
ACCE opinionWalker & Dunlop Inc Common Stock (WD)
Fair value (2 models)
$47.88
ACCE price target
$34.00
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 15:05 CEST; previously $49.40 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:05 CEST.
Price used: $34.16 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Graham number.
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
28.7% below
+40.2% to fair value
ACCE score
33
out of 100
Analysts
75% buy
4 covering
P/E
28.9x
forward 6.5x
1-year return
-60.5%
Dividend yield
7.84%
Walker & Dunlop Inc Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Walker & Dunlop originates and services commercial and multifamily mortgages through Fannie Mae, Freddie Mac and HUD programs, earning origination fees, loan servicing fees and interest on escrow balances, with the servicing book acting as a recurring revenue base. The durable part of the model is that servicing portfolio, which generates fees for years after each loan closes and should cushion earnings when origination volumes dip. The near-term swing factor is the rate and transaction cycle for multifamily lending, since a recovery in property sales and refinancing would lift origination revenue quickly. Revenue fell 10.0% in the latest data and operating margin was just 0.8%, with ROE at 2.4%, so the earnings base is thin and the case rests on a volume rebound that has not yet shown up. The forward P/E of 11.0 against a trailing 29.8 signals the market expects earnings to recover sharply, which makes this worth a closer look only if you can get comfortable with how much of that recovery depends on rates falling.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse
Earnings are down 90.9% year over year and revenue is down 10.0%. Operating margin is only 0.8% and ROE is 2.4%, so there is little cushion.
high
Negative free cash flow
Free cash flow is -$680.1M against a $1.1B market cap, with debt-to-equity at 1.30. The balance sheet is stretched and cash generation is not covering the gap.
moderate
Score fell sharply
The ACCE score dropped 25 points over 90 days, from 58 to 33, with margin (17) and quality (45) the weakest components.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Analysts rate the stock Buy or Strong Buy, with three of four ratings at that level.
Walker & Dunlop beat the latest earnings estimate, reporting 1.19 per share against 1.13 expected.
The stock trades at a forward P/E of 5.9x, well below the sector median of 11.9x.
Why it could disappoint
Revenue fell 10.0% year over year, and the company's net margin is only 3.3%.
Free cash flow over the last twelve months was negative at -$680M, against debt to equity of 1.30.
Return on equity of 2.4% and return on invested capital of 1.2% show weak returns on the capital the business uses.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where WD's valuation models land
Price
$34.16
Model fair value
$47.88
Model range
$44.11 to $51.65
Fair value $47.88
Price $34.16
The price is below the whole model range.
Model
Fair value
Upside
Graham number
P/E comparison
Residual income
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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