RWT Relative Valuation - Redwood Trust Inc - Alpha Spread

Redwood Trust Inc
NYSE:RWT

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Redwood Trust Inc
NYSE:RWT
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Price: 7.39 USD -0.27% Market Closed
Market Cap: 976.6m USD
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Relative Value

The Relative Value of one RWT stock under the Base Case scenario is 13.96 USD. Compared to the current market price of 7.39 USD, Redwood Trust Inc is Undervalued by 47%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

RWT Relative Value
Base Case
13.96 USD
Undervaluation 47%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
65
vs Industry
69
Median 3Y
1.2
Median 5Y
1.2
Industry
3.8
Forward
8.8
vs History
6
vs Industry
6
Median 3Y
2.5
Median 5Y
2.3
Industry
16.5
Forward
13.4
vs History
vs Industry
65
Median 3Y
-0.3
Median 5Y
-0.4
Industry
11
vs History
vs Industry
Median 3Y
-0.7
Median 5Y
-0.6
Industry
12.9
vs History
25
vs Industry
47
Median 3Y
0.8
Median 5Y
0.8
Industry
0.8
vs History
31
vs Industry
10
Median 3Y
17.7
Median 5Y
17.6
Industry
6.7
Forward
140.5
vs History
25
vs Industry
2
Median 3Y
93.9
Median 5Y
93.3
Industry
11.9
vs History
25
vs Industry
1
Median 3Y
134.7
Median 5Y
107.7
Industry
16
Forward
18.2
vs History
11
vs Industry
1
Median 3Y
53
Median 5Y
109
Industry
19
Forward
18.2
vs History
vs Industry
15
Median 3Y
-3.5
Median 5Y
-6.7
Industry
18.2
vs History
vs Industry
19
Median 3Y
-3.5
Median 5Y
-6.7
Industry
19.9
vs History
14
vs Industry
27
Median 3Y
1
Median 5Y
1
Industry
0.7

Multiples Across Competitors

RWT Competitors Multiples
Redwood Trust Inc Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Redwood Trust Inc
NYSE:RWT
977.1m USD 1.1 38.7 182.2 217.1
US
New Residential Investment Corp
LSE:0K76
481.4B USD 109.8 828.4 499.9 499.9
US
Annaly Capital Management Inc
NYSE:NLY
10.1B USD 2.5 -15.3 -197.5 -185.6
US
AGNC Investment Corp
NASDAQ:AGNC
7.8B USD 2.4 27 186.9 186.9
US
Starwood Property Trust Inc
NYSE:STWD
6.2B USD 2.9 18.1 157.2 230.9
US
Rithm Capital Corp
NYSE:RITM
5.7B USD 1.3 9.8 33.7 33.7
US
Hannon Armstrong Sustainable Infrastructure Capital Inc
NYSE:HASI
3.7B USD 9.8 14.3 145.9 151.1
US
Blackstone Mortgage Trust Inc
NYSE:BXMT
3.2B USD 1.6 -20.1 386.9 388.2
US
Arbor Realty Trust Inc
NYSE:ABR
2.5B USD 1.6 9.2 34.6 35.5
US
Ladder Capital Corp
NYSE:LADR
1.5B USD 2.9 15.3 28 36.7
US
Two Harbors Investment Corp
NYSE:TWO
1.4B USD 1.4 16.7 59.7 59.7

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