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    SLM (SLM), Why SLM Is Back In The Spotlight

    Simply Wall St·11/10/2026 09:24:56
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    SLM (SLM) shares are back in focus after analysts lowered their fair value estimate to US$24.78 per share from US$26.09, prompting fresh questions about what investors are paying for today.

    Recent trading has been rough for SLM, with the share price down 24.9% over the past month and 38.3% year to date. While the 1 year total shareholder return has declined 35.6%, the 3 year total shareholder return of 21.0% shows longer term holders have still seen a positive overall result.

    Spot fresh opportunities beyond SLM by scanning a curated set of resilient financials and credit-focused businesses in our 30 resilient stocks with low risk scores.

    After a drop of more than one third in a year and a fair value mark now well above the US$16.91 share price, does it make more sense to step into SLM today, or to wait for a cleaner entry point as sentiment settles?

    Most Popular Narrative: 32% Undervalued

    SLM's analyst consensus Narrative on Simply Wall St places fair value at $24.78, noticeably above the last close at $16.91. This highlights a sizable valuation gap and focuses attention on how future loan growth and credit costs interact with that discount rate of 11.79%.

    The build out of private credit partnerships, including the existing agreement with KKR that carries a US$2b annual flow commitment and the move toward routing 30% to 40% of originations through similar vehicles, is intended to shift more of SLM’s economics toward recurring program management and servicing fees. This can support net margins and reduce capital intensity.

    See why 3 investors see SLM as 32% undervalued.

    Result: Fair Value of $24.78 (UNDERVALUED)

    Still, if SLM’s higher net charge offs and sharply higher noninterest expenses persist for longer than analysts expect, that could quickly weaken the current undervaluation story.

    Find out about the key risks to this SLM narrative.

    Next Steps

    Sentiment on SLM is clearly mixed, with real concerns on one side and genuine upside drivers on the other. Move quickly and pressure test the thesis for yourself by weighing the 4 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond SLM?

    If SLM has your attention, do not stop there. Broaden your watchlist with other clear setups that match your risk tolerance and return goals.