OneMain Holdings Valuation

Is OMF 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 OMF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OMF ($57.43) is trading below our estimate of fair value ($97.2)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for OMF. This is calculated by dividing OMF's market cap by their current earnings.
What is OMF's PE Ratio?
PE Ratio12.5x
EarningsUS$548.00m
Market CapUS$6.84b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for OMF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.6x
SLM SLM
8.7x0.7%US$5.6b
QFIN Qifu Technology
7.6x9.6%US$5.6b
CACC Credit Acceptance
30.9x49.0%US$5.7b
ALLY Ally Financial
15.2x28.2%US$11.7b
OMF OneMain Holdings
12.5x31.2%US$6.8b

Price-To-Earnings vs Peers: OMF is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (15.6x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YRD Yiren Digital
1.7xn/aUS$410.33m
XYF X Financial
2xn/aUS$360.90m
No more companies available in this PE range
OMF 12.5xIndustry Avg. 12.5xNo. of Companies5PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OMF is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the US Consumer Finance industry average (12.5x).


Price to Earnings Ratio vs Fair Ratio

What is OMF'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.

OMF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: OMF is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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 OMF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$57.43
US$58.31
+1.5%
8.6%US$64.00US$46.00n/a13
Nov ’25US$49.78
US$58.00
+16.5%
9.1%US$64.00US$46.00n/a12
Oct ’25US$45.71
US$57.08
+24.9%
5.9%US$61.00US$52.00n/a12
Sep ’25US$49.41
US$57.50
+16.4%
5.2%US$61.00US$52.00n/a12
Aug ’25US$48.56
US$57.58
+18.6%
5.3%US$61.00US$52.00n/a12
Jul ’25US$48.27
US$56.85
+17.8%
6.9%US$64.00US$50.00n/a13
Jun ’25US$49.12
US$57.15
+16.4%
7.3%US$64.00US$50.00n/a13
May ’25US$50.76
US$57.31
+12.9%
7.4%US$64.00US$50.00n/a13
Apr ’25US$50.23
US$54.00
+7.5%
8.6%US$62.00US$47.00n/a13
Mar ’25US$48.71
US$52.43
+7.6%
8.3%US$62.00US$47.00n/a14
Feb ’25US$47.87
US$54.33
+13.5%
9.2%US$68.00US$48.00n/a15
Jan ’25US$49.20
US$48.29
-1.9%
10.5%US$55.00US$38.00n/a14
Dec ’24US$43.33
US$47.00
+8.5%
11.7%US$55.00US$38.00US$57.3514
Nov ’24US$36.35
US$47.29
+30.1%
12.3%US$55.00US$38.00US$49.7814
Oct ’24US$40.09
US$52.62
+31.2%
8.4%US$60.00US$46.00US$45.7113
Sep ’24US$42.30
US$52.62
+24.4%
8.4%US$60.00US$46.00US$49.4113
Aug ’24US$45.51
US$52.62
+15.6%
8.4%US$60.00US$46.00US$48.5613
Jul ’24US$43.69
US$51.23
+17.3%
11.7%US$62.00US$41.00US$48.2713
Jun ’24US$39.07
US$51.54
+31.9%
11.6%US$62.00US$41.00US$49.1213
May ’24US$38.91
US$51.36
+32.0%
11.6%US$62.00US$41.00US$50.7614
Apr ’24US$37.08
US$51.93
+40.0%
10.1%US$62.00US$43.00US$50.2314
Mar ’24US$43.30
US$51.93
+19.9%
10.1%US$62.00US$43.00US$48.7114
Feb ’24US$43.41
US$45.71
+5.3%
14.5%US$60.00US$36.00US$47.8714
Jan ’24US$33.31
US$47.29
+42.0%
15.1%US$60.00US$36.00US$49.2014
Dec ’23US$39.44
US$47.50
+20.4%
14.4%US$60.00US$36.00US$43.3314

Analyst Forecast: Target price is less than 20% higher than the current share price.


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