PennyMac Mortgage Valuation

PMT Stock  USD 14.52  0.18  1.26%   
At this time, the company appears to be fairly valued. PennyMac Mortgage holds a recent Real Value of $14.0 per share. The prevailing price of the company is $14.52. Our model determines the value of PennyMac Mortgage from analyzing the company fundamentals such as Shares Outstanding of 86.65 M, return on equity of 0.1, and Operating Margin of 0.13 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and selling overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Price Book
0.8777
Enterprise Value
11.9 B
Price Sales
1.7285
Forward PE
11.0254
Trailing PE
8.8834
Fairly Valued
Today
14.52
Please note that PennyMac Mortgage's price fluctuation is very steady at this time. Calculation of the real value of PennyMac Mortgage is based on 3 months time horizon. Increasing PennyMac Mortgage's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for PennyMac Mortgage Investment is useful when determining the fair value of the PennyMac stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of PennyMac Mortgage. Since PennyMac Mortgage is currently traded on the exchange, buyers and sellers on that exchange determine the market value of PennyMac Stock. However, PennyMac Mortgage's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  14.52 Real  14.0 Target  13.64 Hype  14.52 Naive  14.19
The real value of PennyMac Stock, also known as its intrinsic value, is the underlying worth of PennyMac Mortgage Company, which is reflected in its stock price. It is based on PennyMac Mortgage's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of PennyMac Mortgage's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence PennyMac Mortgage's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
14.00
Real Value
15.49
Upside
Estimating the potential upside or downside of PennyMac Mortgage Investment helps investors to forecast how PennyMac stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of PennyMac Mortgage more accurately as focusing exclusively on PennyMac Mortgage's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.270.330.37
Details
Hype
Prediction
LowEstimatedHigh
13.0314.5216.01
Details
Potential
Annual Dividend
LowForecastedHigh
1.001.141.27
Details
9 Analysts
Consensus
LowTarget PriceHigh
12.4113.6415.14
Details

PennyMac Mortgage Investments

(487.51 Million)

PennyMac Mortgage Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining PennyMac Mortgage's current stock value. Our valuation model uses many indicators to compare PennyMac Mortgage value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across PennyMac Mortgage competition to find correlations between indicators driving PennyMac Mortgage's intrinsic value. More Info.
PennyMac Mortgage Investment is regarded third in last dividend paid category among related companies. It is regarded second in net asset category among related companies making up about  8,196,179,375  of Net Asset per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value PennyMac Mortgage by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PennyMac Mortgage's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the PennyMac Mortgage's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates PennyMac Mortgage's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in PennyMac Mortgage and how it compares across the competition.

About PennyMac Mortgage Valuation

The stock valuation mechanism determines the current worth of PennyMac Mortgage Investment on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of PennyMac Mortgage Investment. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of PennyMac Mortgage based exclusively on its fundamental and basic technical indicators. By analyzing PennyMac Mortgage's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of PennyMac Mortgage's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of PennyMac Mortgage. We calculate exposure to PennyMac Mortgage's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to PennyMac Mortgage's related companies.
Last ReportedProjected for 2024
Gross Profit1.3 B1.4 B
Pretax Profit Margin 0.17  0.16 
Operating Profit Margin 0.67  0.70 
Net Profit Margin 0.14  0.13 
Gross Profit Margin 0.90  0.94 

8 Steps to conduct PennyMac Mortgage's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates PennyMac Mortgage's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct PennyMac Mortgage's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain PennyMac Mortgage's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine PennyMac Mortgage's revenue streams: Identify PennyMac Mortgage's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research PennyMac Mortgage's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish PennyMac Mortgage's growth potential: Evaluate PennyMac Mortgage's management, business model, and growth potential.
  • Determine PennyMac Mortgage's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate PennyMac Mortgage's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
PennyMac Mortgage's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether PennyMac Mortgage's value is low or high relative to the company's performance and growth projections. Determining the market value of PennyMac Mortgage can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of PennyMac Mortgage represents a small ownership stake in the entity. As a stockholder of PennyMac, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

PennyMac Mortgage Dividends Analysis For Valuation

Dividend Paid And Capex Coverage Ratio is likely to gain to 8.39 in 2024, despite the fact that Dividends Paid is likely to grow to (173.3 M). . Price Earnings Ratio is likely to gain to 8.68 in 2024, despite the fact that Retained Earnings are likely to grow to (483.3 M).
Last ReportedProjected for 2024
Dividends Paid-182.4 M-173.3 M
Dividend Yield 0.11  0.09 
Dividend Payout Ratio 0.91  0.86 
Dividend Paid And Capex Coverage Ratio 7.99  8.39 
There are various types of dividends PennyMac Mortgage can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of PennyMac shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from PennyMac Mortgage Investment directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When PennyMac pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of PennyMac Mortgage by the value of the dividends paid out.

PennyMac Mortgage Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as PennyMac Mortgage does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding111 M
Quarterly Earnings Growth Y O Y50.468
Forward Price Earnings11.0254

PennyMac Mortgage Current Valuation Indicators

Valuation refers to the process of determining the present value of PennyMac Mortgage Investment and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value PennyMac we look at many different elements of the entity such as PennyMac's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. PennyMac Mortgage's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final PennyMac Mortgage's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as PennyMac Mortgage, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use PennyMac Mortgage's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes PennyMac Mortgage's worth.
When determining whether PennyMac Mortgage is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if PennyMac Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Pennymac Mortgage Investment Stock. Highlighted below are key reports to facilitate an investment decision about Pennymac Mortgage Investment Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PennyMac Mortgage Investment. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for PennyMac Stock analysis

When running PennyMac Mortgage's price analysis, check to measure PennyMac Mortgage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PennyMac Mortgage is operating at the current time. Most of PennyMac Mortgage's value examination focuses on studying past and present price action to predict the probability of PennyMac Mortgage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PennyMac Mortgage's price. Additionally, you may evaluate how the addition of PennyMac Mortgage to your portfolios can decrease your overall portfolio volatility.
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Global Correlations
Find global opportunities by holding instruments from different markets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Commodity Directory
Find actively traded commodities issued by global exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Is PennyMac Mortgage's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PennyMac Mortgage. If investors know PennyMac will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PennyMac Mortgage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
50.468
Dividend Share
1.6
Earnings Share
1.63
Revenue Per Share
8.308
Quarterly Revenue Growth
2.037
The market value of PennyMac Mortgage is measured differently than its book value, which is the value of PennyMac that is recorded on the company's balance sheet. Investors also form their own opinion of PennyMac Mortgage's value that differs from its market value or its book value, called intrinsic value, which is PennyMac Mortgage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PennyMac Mortgage's market value can be influenced by many factors that don't directly affect PennyMac Mortgage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PennyMac Mortgage's value and its price as these two are different measures arrived at by different means. Investors typically determine if PennyMac Mortgage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PennyMac Mortgage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.