We’ve recently updated our valuation analysis.

UWM Holdings Valuation

Is UWMC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

[object Object] Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UWMC?

Other financial metrics that can be useful for relative valuation.

UWMC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.2x
Enterprise Value/EBITDA6.3x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

How does UWMC's PE Ratio compare to its peers?

The above table shows the PE ratio for UWMC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.5x
NYCB New York Community Bancorp
10.7x14.6%US$6.3b
ESNT Essent Group
5x-11.6%US$4.3b
ACT Enact Holdings
5.7x-12.4%US$4.0b
MTG MGIC Investment
4.7x-14.1%US$4.0b
UWMC UWM Holdings
6.8x-40.0%US$7.1b

Price-To-Earnings vs Peers: UWMC is expensive based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (6.5x).


Price to Earnings Ratio vs Industry

How does UWMC's PE Ratio compare vs other companies in the US Mortgage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.1%
n/an/an/a

Price-To-Earnings vs Industry: UWMC is good value based on its Price-To-Earnings Ratio (6.8x) compared to the US Mortgage industry average (11.9x)


Price to Earnings Ratio vs Fair Ratio

What is UWMC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UWMC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio4.2x

Price-To-Earnings vs Fair Ratio: UWMC is expensive based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (4.2x).


Share Price vs Fair Value

What is the Fair Price of UWMC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UWMC ($4.36) is trading below our estimate of fair value ($17.43)

Significantly Below Fair Value: UWMC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst UWMC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$4.36
US$3.63
-16.7%
17.7%US$5.00US$2.50n/a10
Nov ’23US$3.24
US$3.55
+9.6%
18.0%US$5.00US$2.50n/a10
Oct ’23US$2.93
US$3.65
+24.6%
17.1%US$5.00US$2.50n/a10
Sep ’23US$3.60
US$3.70
+2.8%
14.7%US$5.00US$3.00n/a10
Aug ’23US$3.68
US$3.76
+2.2%
14.5%US$5.00US$3.00n/a10
Jul ’23US$3.72
US$3.99
+7.1%
15.0%US$5.00US$3.00n/a10
Jun ’23US$4.07
US$4.09
+0.4%
16.4%US$5.00US$3.00n/a10
May ’23US$3.71
US$4.91
+32.3%
14.9%US$6.50US$4.00n/a10
Apr ’23US$4.49
US$5.41
+20.5%
25.6%US$9.00US$4.50n/a10
Mar ’23US$4.62
US$6.43
+39.1%
22.2%US$9.00US$5.00n/a10
Feb ’23US$4.93
US$7.28
+47.6%
14.0%US$9.00US$5.50n/a10
Jan ’23US$5.92
US$7.85
+32.6%
10.3%US$9.00US$6.50n/a10
Dec ’22US$6.80
US$8.08
+18.9%
9.2%US$9.00US$7.00US$4.369
Nov ’22US$7.11
US$8.08
+13.7%
9.2%US$9.00US$7.00US$3.249
Oct ’22US$7.00
US$8.58
+22.6%
15.9%US$12.00US$7.00US$2.939
Sep ’22US$7.40
US$8.75
+18.2%
16.2%US$12.00US$7.00US$3.609
Aug ’22US$7.63
US$9.11
+19.4%
13.9%US$12.00US$8.00US$3.689
Jul ’22US$8.22
US$9.25
+12.5%
14.6%US$12.00US$7.50US$3.728
Jun ’22US$8.90
US$9.13
+2.5%
16.9%US$12.00US$7.50US$4.076
May ’22US$8.16
US$11.00
+34.8%
14.6%US$13.50US$9.00US$3.716
Apr ’22US$7.75
US$11.20
+44.5%
15.1%US$13.50US$9.00US$4.495
Mar ’22US$7.63
US$11.70
+53.3%
9.6%US$13.50US$10.50US$4.625
Feb ’22US$10.10
US$13.50
+33.7%
0%US$13.50US$13.50US$4.931

Analyst Forecast: Target price is lower than the current share price.


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