RWT Valuation

Redwood Trust Inc

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5.880

-0.14(-2.326%)1D

Overview
Forecast
Valuation
Earnings

RWT Relative Valuation

RWT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RWT is overvalued; if below, it's undervalued.

Historical Valuation

Redwood Trust Inc (RWT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.36 is considered Undervalued compared with the five-year average of 10.92. The fair price of Redwood Trust Inc (RWT) is between 8.45 to 13.19 according to relative valuation methord. Compared to the current price of 5.88 USD , Redwood Trust Inc is Undervalued By 30.44%.

Relative Value

Fair Zone

8.45-13.19

Current Price：5.88

30.44%

Undervalued

7.36

Trailing

Forward

0.00

EV/EBITDA

Redwood Trust Inc. (RWT) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

0.00

EV/EBIT

Redwood Trust Inc. (RWT) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.

5.89

Redwood Trust Inc. (RWT) has a current PS of 5.89. The 5-year average PS is 7.36. The thresholds are as follows: Strongly Undervalued below 4.36, Undervalued between 4.36 and 5.86, Fairly Valued between 8.86 and 5.86, Overvalued between 8.86 and 10.36, and Strongly Overvalued above 10.36. The current Forward PS of 5.89 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Redwood Trust Inc. (RWT) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

10.57

P/FCF

Redwood Trust Inc. (RWT) has a current P/FCF of 10.57. The 5-year average P/FCF is 1.68. The thresholds are as follows: Strongly Undervalued below -6.96, Undervalued between -6.96 and -2.64, Fairly Valued between 6.01 and -2.64, Overvalued between 6.01 and 10.33, and Strongly Overvalued above 10.33. The current Forward P/FCF of 10.57 falls within the Strongly Overvalued range.

Redwood Trust Inc (RWT) has a current Price-to-Book (P/B) ratio of 0.68. Compared to its 3-year average P/B ratio of 0.75 , the current P/B ratio is approximately -10.00% higher. Relative to its 5-year average P/B ratio of 0.83, the current P/B ratio is about -18.94% higher. Redwood Trust Inc (RWT) has a Forward Free Cash Flow (FCF) yield of approximately -912.21%. Compared to its 3-year average FCF yield of -313.70%, the current FCF yield is approximately 190.79% lower. Relative to its 5-year average FCF yield of -281.08% , the current FCF yield is about 224.54% lower.

0.68

P/B

Median3y

0.75

Median5y

0.83

-912.21

FCF Yield

Median3y

-313.70

Median5y

-281.08

Competitors Valuation Multiple

The average P/S ratio for RWT's competitors is , providing a benchmark for relative valuation. Redwood Trust Inc Corp (RWT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 34.74%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CBL & Associates Properties Inc

Orchid Island Capital Inc

Plymouth Industrial REIT Inc

Brandywine Realty Trust

Loss

-3.93%

759.71M

Performance Decomposition

Market capitalization of RWT decreased by 17.79% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 214.18M to 288.59M.

The secondary factor is the P/E Change, contributed 7.84%to the performance.

Overall, the performance of RWT in the past 1 year is driven by Revenue Growth. Which is more sustainable.

34.74%

214.18M → 288.59M

Revenue Growth

-60.37%

14.13 → 5.60

Margin Expansion

7.84%

24.97 → 26.93

P/E Change

-17.79%