Is Ladder Capital Overvalued Following Recent Increases in Share Price?

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 16 2025

0mins

LADR-0.37%

Should l Buy LADR?

Source: Yahoo Finance

Stock Performance Overview: Ladder Capital's stock has seen modest gains recently, with a 3.8% increase over the past week and 5.9% over the past month, but remains only 1.6% up year-to-date and 4.0% over the last year, despite significant long-term growth.
Valuation Concerns: The company scores 0 out of 6 on undervaluation checks, indicating it may be overvalued by approximately 20.3% based on the Excess Returns model, which suggests projected earnings do not cover the required return for investors.
Price-to-Earnings Analysis: Ladder Capital's current price-to-earnings (PE) ratio of 18.10x is above industry averages, suggesting the market may be pricing in more growth potential than the fundamentals support, as the fair PE ratio is estimated at 10.83x.
Narratives for Valuation: The article introduces the concept of "Narratives" as a tool for investors to articulate their assumptions about a company's future performance and compare it to current share prices, allowing for a more personalized valuation approach.

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Analyst Views on LADR

Wall Street analysts forecast LADR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LADR is 12.33 USD with a low forecast of 11.50 USD and a high forecast of 13.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Analyst Rating

2 Buy

1 Hold

0 Sell

Moderate Buy

Current: 10.910

Low

11.50

Averages

12.33

High

13.50

Current: 10.910

Low

11.50

Averages

12.33

High

13.50

Keefe Bruyette

Outperform

maintain

$12

2025-07-25

Reason

Keefe Bruyette

Price Target

$12

AI Analysis

2025-07-25

maintain

Outperform

Reason

Keefe Bruyette raised the firm's price target on Ladder Capital to $12 from $11.75 and keeps an Outperform rating on the shares.

Keefe Bruyette

Jade Rahmani

Outperform

maintain

2025-07-10

Reason

Keefe Bruyette

Jade Rahmani

Price Target

2025-07-10

maintain

Outperform

Reason

Keefe Bruyette analyst Jade Rahmani raised the firm's price target on Ladder Capital to $11.75 from $11.50 and keeps an Outperform rating on the shares.

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About LADR

Ladder Capital Corp is an internally-managed commercial real estate investment trust. The Company's segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in commercial mortgage-backed securities, United States Agency Securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, student housing portfolios, hotels, industrial buildings, a shopping center and condominium units. Corporate/other includes cash and cash equivalents, senior unsecured notes, compensation and employee benefits. It invests primarily in senior first mortgage fixed, and floating rate loans collateralized by commercial real estate with flexible loan structures.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Ladder Capital Announces 2025 Dividend Tax Treatment

4 days agoNewsfilter

Dividend Overview: Ladder Capital has announced a total dividend payment of $0.690 per share for its 2025 Class A common stock, with qualified dividends amounting to $0.651, indicating the company's robust cash flow and commitment to shareholder returns.
Tax Treatment Details: The dividend payments for 2025 will be categorized into ordinary dividends and capital gains, with ordinary dividends set at $0.230 per share, reflecting the company's ongoing commitment to transparency and shareholder value.
Company Background: Since its inception in 2008, Ladder has deployed over $49 billion in capital, focusing on commercial real estate financing in the middle market, showcasing its strong position and demand in the industry.
Management and Shareholder Structure: Ladder is internally managed by a seasoned team, with over 11% insider ownership ensuring alignment of interests between management and all stakeholders, thereby enhancing corporate governance effectiveness.

Ladder Capital Corp Upgraded to 'BB+' by S&P, Reflecting Strong Financial Position

Jan 21 2026Businesswire

Rating Upgrade: S&P Global Ratings upgraded Ladder Capital's subsidiary issuers and unsecured notes from 'BB' to 'BB+', reflecting the company's improved leverage profile and strong business diversification, which is expected to enhance investor confidence and attract more capital inflow.
Strong Liquidity: The company maintains ample liquidity and a largely unsecured capital structure, allowing it to remain stable amid market fluctuations and effectively respond to potential risks while seizing market opportunities.
Investment Grade Status: Ladder Capital became the only investment grade-rated mortgage REIT in 2025, receiving Baa3 and BBB- ratings from Moody's and Fitch, respectively, further solidifying its leading position in the industry.
Management Strength: The company is led by an experienced management team with a strong internal management model that ensures alignment of interests with all stakeholders, enhancing its competitiveness and execution capabilities in the capital markets.

Ladder Capital Corp Upgraded to 'BB+' by S&P Global Ratings

Jan 21 2026Newsfilter

Rating Upgrade: S&P Global Ratings upgraded Ladder Capital's rating from 'BB' to 'BB+', reflecting the company's improved leverage profile and strong business diversification, which is expected to enhance its market competitiveness.
Liquidity Advantage: The company boasts ample liquidity and a largely unsecured capital structure, enabling it to effectively manage risks and maintain stable operations in uncertain market conditions.
Investment Grade Status: Ladder Capital is the only investment-grade-rated mortgage REIT, receiving Baa3 and BBB- ratings from Moody's and Fitch respectively, indicating its unique position and financial robustness in the industry.
Management Strength: Led by an experienced management team, the internally managed structure and over 11% insider ownership ensure alignment of interests between management and shareholders, further boosting investor confidence.