SLM Corporation: Assessing Valuation Amid Rising Delinquency Disputes and New Class Action Lawsuits

SLM Corporation's valuation is under pressure due to rising delinquency disputes and new class action lawsuits. Despite the legal headlines, the company's 1-year total shareholder return decline of 3.96% contrasts with a stronger 3-year total shareholder return of 84.12% and 5-year total shareholder return of 102.89%. SLM is undervalued by 13.7%, with a narrative fair value of $31.73, based on firmer profitability and a tighter share count. The company's exploration of new alternative funding partnerships could enhance funding efficiency and scalability, strengthening net margins and earnings stability.