PennyMac Financial Services, Inc. (PFSI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+22.1%

$78.87

vs $64.61 price

Levered DCF

-$855.90

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.26

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.61×	16.72×	30.58×	6.32×	4.44×	2.99×	6.78×	8.21×
P/B	1.58×	1.36×	1.25×	0.87×	1.3×	1.46×	1.29×	0.43×
P/S	1.54×	1.83×	2.17×	1.3×	1.25×	1.25×	1.58×	0.63×
EV / EBITDA	47.64×	54.04×	40.03×	18.24×	12.91×	13.73×	17.39×	19.39×
Gross margin	59.3%	48.1%	41.6%	56.3%	59.9%	70.0%	53.1%	50.3%
Operating margin	12.5%	14.1%	17.4%	29.7%	38.2%	56.7%	31.5%	23.5%
Net margin	11.3%	10.9%	7.1%	20.5%	28.2%	41.7%	23.4%	7.7%
Current ratio	0.04×	1.56×	2.05×	2.29×	1.65×	2.56×	1.31×	1.49×
Debt / equity	5.35×	5.37×	3.81×	3.4×	4.09×	7.93×	3.45×	2.95×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	1.85×
Dividend yield	0.9%	1.0%	0.9%	1.8%	1.2%	0.6%	0.4%	1.4%
Payout ratio	12.5%	16.7%	28.7%	11.5%	5.3%	1.9%	2.5%	11.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.6%	8.1%	4.1%	13.7%	29.4%	48.6%	19.1%	5.3%
Return on invested capital	1.7%	1.3%	1.6%	3.2%	5.7%	5.4%	4.3%	3.7%
Return on assets	1.7%	1.2%	0.8%	2.8%	5.3%	5.2%	3.9%	1.2%
Free cash flow yield	-20.7%	-87.5%	-36.6%	197.9%	56.3%	-127.4%	-80.9%	43.6%
Earnings yield	7.3%	6.0%	3.3%	15.8%	22.5%	33.4%	14.8%	12.2%
Enterprise value	$29.6B	$25.5B	$17B	$13.5B	$18.1B	$31.3B	$9.6B	$5.4B
Net debt / EBITDA	36.66×	43.02×	29.61×	14.17×	9.73×	11.57×	12.59×	16.82×
Cash conversion cycle (days)	1	1,746	1,489	1,110	1,178	2,258	1,108	457