RWT PE Ratio & Valuation,Is RWT Overvalued

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 Fair zone, suggesting that its current forward PE ratio of 7.36 is considered Fairly compared with the five-year average of 11.02. The fair price of Redwood Trust Inc (RWT) is between 5.11 to 9.72 according to relative valuation methord.

Relative Value

Fair Zone

5.11-9.72

Current Price：5.62

Fair

7.36

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 4.30, Undervalued between 4.30 and 5.83, Fairly Valued between 8.88 and 5.83, Overvalued between 8.88 and 10.41, and Strongly Overvalued above 10.41. 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 1.77. The thresholds are as follows: Strongly Undervalued below -7.06, Undervalued between -7.06 and -2.64, Fairly Valued between 6.18 and -2.64, Overvalued between 6.18 and 10.60, and Strongly Overvalued above 10.60. The current Forward P/FCF of 10.57 falls within the 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 0.76 , the current P/B ratio is approximately -10.87% higher. Relative to its 5-year average P/B ratio of 0.83, the current P/B ratio is about -18.57% 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 -316.88%, the current FCF yield is approximately 187.87% lower. Relative to its 5-year average FCF yield of -294.78% , the current FCF yield is about 209.46% lower.

0.68

P/B

Median3y

0.76

Median5y

0.83

-912.21

FCF Yield

Median3y

-316.88

Median5y

-294.78

Competitors Valuation Multiple

The average P/S ratio for RWT's competitors is 3.12, providing a benchmark for relative valuation. Redwood Trust Inc Corp (RWT) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 34.74%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of RWT decreased by 9.31% 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 16.32%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

16.32%

23.15 → 26.93

P/E Change

-9.31%

6.17 → 5.60

Mkt Cap Growth

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Frequently Asked Questions

Is Redwood Trust Inc (RWT) currently overvalued or undervalued?

What is Redwood Trust Inc (RWT) fair value?

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. The fair price of Redwood Trust Inc (RWT) is between 5.11 to 9.72 according to relative valuation methord.

How does RWT's valuation metrics compare to the industry average?

The average P/S ratio for RWT's competitors is 3.12, providing a benchmark for relative valuation. Redwood Trust Inc Corp (RWT) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 34.74%, this premium appears sustainable.

What is the current P/B ratio for Redwood Trust Inc (RWT) as of Dec 15 2025?

As of Dec 15 2025, Redwood Trust Inc (RWT) has a P/B ratio of 0.68. This indicates that the market values RWT at 0.68 times its book value.

What is the current FCF Yield for Redwood Trust Inc (RWT) as of Dec 15 2025?

As of Dec 15 2025, Redwood Trust Inc (RWT) has a FCF Yield of -912.21%. This means that for every dollar of Redwood Trust Inc’s market capitalization, the company generates -912.21 cents in free cash flow.

What is the current Forward P/E ratio for Redwood Trust Inc (RWT) as of Dec 15 2025?

As of Dec 15 2025, Redwood Trust Inc (RWT) has a Forward P/E ratio of 7.36. This means the market is willing to pay $7.36 for every dollar of Redwood Trust Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Redwood Trust Inc (RWT) as of Dec 15 2025?

As of Dec 15 2025, Redwood Trust Inc (RWT) has a Forward P/S ratio of 5.89. This means the market is valuing RWT at $5.89 for every dollar of expected revenue over the next 12 months.

RWT Valuation

RWT Valuation

RWT Relative Valuation

Historical Valuation

Competitors Valuation Multiple

Performance Decomposition

People Also Watch

Frequently Asked Questions

Is Redwood Trust Inc (RWT) currently overvalued or undervalued?

What is Redwood Trust Inc (RWT) fair value?

How does RWT's valuation metrics compare to the industry average?

What is the current P/B ratio for Redwood Trust Inc (RWT) as of Dec 15 2025?

What is the current FCF Yield for Redwood Trust Inc (RWT) as of Dec 15 2025?

What is the current Forward P/E ratio for Redwood Trust Inc (RWT) as of Dec 15 2025?

What is the current Forward P/S ratio for Redwood Trust Inc (RWT) as of Dec 15 2025?