PennyMac Financial Services Inc (PFSI) is undervalued and Walker & Dunlop Inc (WD) is undervalued.
Against our estimates of intrinsic value, WD trades at the wider discount: a margin of safety of +71%, against +61% for PFSI.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.5% (average of 3 methods) values the shares at $170.68; the price of $66.96 is 61% below that value, and 85% of that value comes from beyond year five.
Leak Score 41/100 on 3 of 12 signals
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $133.53; the price of $38.32 is 71% below that value, and 81% of that value comes from beyond year five.
Leak Score 55/100 on 7 of 12 signals
| Metric | PFSI | WD |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $66.96 | $38.32 |
| Intrinsic value | $170.68 | $133.53 |
| Margin of safety | +61% | +71% |
| Leak Score | 41/100 (3/12) | 55/100 (7/12) |
| Market cap | $3.5B | $1.3B |
| Revenue growth, 5 years | 0.1% | 3.2% |
| Operating margin | 30.1% | 15.2% |
| Net margin | 8.2% | 3.0% |
| Return on equity | 9.4% | 2.2% |
| Debt to equity | 3.57 | 1.39 |
| P/E | 9.2x | 34.2x |
| Forward P/E | 6.2x | 7.0x |
| P/B | 0.8x | 0.8x |
| Dividend yield | 1.2% | 7.1% |