Consumer Portfolio Services Valuation

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

CPSS ($10.55) is trading below our estimate of [[fair value]] ($27.2)

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CPSS ($10.55) is trading below our estimate of fair value ($27.2)

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

Key Valuation Metric

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

Key metric: As CPSS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CPSS. This is calculated by dividing CPSS's market cap by their current earnings.
What is CPSS's PE Ratio?
PE Ratio	10.6x
Earnings	US$21.25m
Market Cap	US$228.18m

CPSS 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPSS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	10.5x
MFIN Medallion Financial	5.3x	16.6%	US$212.4m
RM Regional Management	12.9x	41.5%	US$301.8m
XYF X Financial	1.7x	n/a	US$309.0m
OPFI OppFi	22.1x	66.9%	US$622.5m
CPSS Consumer Portfolio Services	10.6x	104.1%	US$228.2m

Price-To-Earnings vs Peers: CPSS is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

How does CPSS's PE Ratio compare vs other companies in the US Consumer Finance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
YRD Yiren Digital	1.7x	n/a	US$420.76m
XYF X Financial	1.7x	n/a	US$308.99m
JFIN Jiayin Group	2x	n/a	US$306.53m

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CPSS is good value based on its Price-To-Earnings Ratio (10.6x) compared to the US Consumer Finance industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is CPSS'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.

CPSS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.6x
Fair PE Ratio	48.2x

Price-To-Earnings vs Fair Ratio: CPSS is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (48.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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