TWO Relative Valuation
TWO'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, TWO is overvalued; if below, it's undervalued.
Historical Valuation
Two Harbors Investment Corp (TWO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.43 is considered Undervalued compared with the five-year average of 7.81. The fair price of Two Harbors Investment Corp (TWO) is between 11.55 to 14.61 according to relative valuation methord. Compared to the current price of 9.78 USD , Two Harbors Investment Corp is Undervalued By 15.35%.
Relative Value
Fair Zone
11.55-14.61
Current Price：9.78
15.35%
Undervalued
7.24
PE
1Y
3Y
5Y
Trailing
Forward
0.00
EV/EBITDA
Two Harbors Investment Corp. (TWO) 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
Two Harbors Investment Corp. (TWO) 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.
-21.03
PS
Two Harbors Investment Corp. (TWO) has a current PS of -21.03. The 5-year average PS is 2.68. The thresholds are as follows: Strongly Undervalued below -29.90, Undervalued between -29.90 and -13.61, Fairly Valued between 18.96 and -13.61, Overvalued between 18.96 and 35.25, and Strongly Overvalued above 35.25. The current Forward PS of -21.03 falls within the Undervalued range.
0.00
P/OCF
Two Harbors Investment Corp. (TWO) 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.
0.00
P/FCF
Two Harbors Investment Corp. (TWO) has a current P/FCF of 0.00. The 5-year average P/FCF 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/FCF of 0.00 falls within the Strongly Undervalued range.
Two Harbors Investment Corp (TWO) has a current Price-to-Book (P/B) ratio of 0.79. Compared to its 3-year average P/B ratio of 0.84 , the current P/B ratio is approximately -5.88% higher. Relative to its 5-year average P/B ratio of 0.87, the current P/B ratio is about -9.31% higher. Two Harbors Investment Corp (TWO) has a Forward Free Cash Flow (FCF) yield of approximately 26.77%. Compared to its 3-year average FCF yield of 32.21%, the current FCF yield is approximately -16.91% lower. Relative to its 5-year average FCF yield of 31.23% , the current FCF yield is about -14.29% lower.
0.79
P/B
Median3y
0.84
Median5y
0.87
27.20
FCF Yield
Median3y
32.21
Median5y
31.23
Competitors Valuation Multiple
The average P/S ratio for TWO's competitors is -1.80, providing a benchmark for relative valuation. Two Harbors Investment Corp Corp (TWO) exhibits a P/S ratio of -21.03, which is 1069.47% above the industry average. Given its robust revenue growth of -53.68%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TWO decreased by 30.93% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.24 to -2.90.
The secondary factor is the Revenue Growth, contributed -53.68%to the performance.
Overall, the performance of TWO in the past 1 year is driven by P/E Change. Which is more unsustainable.
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