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    Assessing SLM Corporation (SLM) Valuation After Securities Class Action Lawsuits On Delinquency Disclosures

    Simply Wall St·01/06/2026 08:17:12
    語音播報

    SLM (SLM) is back in focus after multiple securities class action lawsuits accused the lender of misleading investors about rising early stage delinquencies and the effectiveness of its loss mitigation and loan modification programs.

    See our latest analysis for SLM.

    That legal overhang sits against a mixed share price picture, with a 90 day share price return of 4.4% and a 1 year total shareholder return of 1.07%. However, the 30 day share price return of a 9.52% decline suggests momentum has recently cooled, even though the 3 year total shareholder return of 75.76% and 5 year total shareholder return of 125.66% show a much stronger longer term record.

    If this kind of legal and credit risk story has you reassessing your watchlist, it could be a good moment to widen your search with fast growing stocks with high insider ownership.

    With class action headlines on one side and solid multi year returns on the other, the real question now is whether SLM’s current valuation reflects these risks, or if the market is underestimating its future growth potential?

    Most Popular Narrative: 13.1% Undervalued

    Compared with SLM’s last close at $27.74, the most followed narrative points to a fair value of about $31.91, framing the current discount as valuation-driven rather than purely sentiment-driven.

    The analysts have a consensus price target of $39.0 for SLM based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $44.0 and the most bearish reporting a price target of just $35.0.

    Read the complete narrative.

    Revenue growth assumptions, margin rebuild and a future earnings multiple all sit at the heart of this fair value story. Curious which of those levers carries the most weight and how sensitive the outcome is to even small changes in the earnings path and discount rate? The full narrative breaks down the math behind that valuation gap.

    Result: Fair Value of $31.91 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, that upside case could quickly change if credit quality weakens further, or if funding costs and asset backed securities performance tighten the screws on margins and growth expectations.

    Find out about the key risks to this SLM narrative.

    Build Your Own SLM Narrative

    If you read this and think the assumptions do not quite fit your view, you can pull up the same data, test your own inputs, and build a complete SLM story in just a few minutes, then share it with others using Do it your way.

    A great starting point for your SLM research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    If SLM has sharpened your thinking, do not stop here. Broaden your watchlist with focused stock ideas tailored to different themes and income goals.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.