TWO PE Ratio & Valuation,Is TWO Overvalued

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 7.11 is considered Undervalued compared with the five-year average of 7.87. The fair price of Two Harbors Investment Corp (TWO) is between 13.42 to 16.57 according to relative valuation methord. Compared to the current price of 10.01 USD , Two Harbors Investment Corp is Undervalued By 25.4%.

Relative Value

Fair Zone

13.42-16.57

Current Price：10.01

25.4%

Undervalued

7.11

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.

-12.88

Two Harbors Investment Corp. (TWO) has a current PS of -12.88. The 5-year average PS is 1.18. The thresholds are as follows: Strongly Undervalued below -32.46, Undervalued between -32.46 and -15.64, Fairly Valued between 17.99 and -15.64, Overvalued between 17.99 and 34.81, and Strongly Overvalued above 34.81. The current Forward PS of -12.88 falls within the Historic Trend Line -Fairly Valued 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 0.89. Compared to its 3-year average P/B ratio of 0.83 , the current P/B ratio is approximately 7.19% higher. Relative to its 5-year average P/B ratio of 0.88, the current P/B ratio is about 1.86% higher. Two Harbors Investment Corp (TWO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 29.94%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 28.81% , the current FCF yield is about -100.00% lower.

0.89

P/B

Median3y

0.83

Median5y

0.88

-4.76

FCF Yield

Median3y

29.94

Median5y

28.81

Competitors Valuation Multiple

The average P/S ratio for TWO's competitors is , providing a benchmark for relative valuation. Two Harbors Investment Corp Corp (TWO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -512.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TWO decreased by 8.90% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.17 to -4.30.

The secondary factor is the Revenue Growth, contributed -512.13%to the performance.

Overall, the performance of TWO in the past 1 year is driven by P/E Change. Which is more unsustainable.

-512.13%

-51.80M → 213.50M

Revenue Growth

-1910.27%

3.31 → -59.92

Margin Expansion

2413.50%

-0.17 → -4.30

P/E Change

-8.90%

10.99 → 10.01

Mkt Cap Growth

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Frequently Asked Questions

Is Two Harbors Investment Corp (TWO) currently overvalued or undervalued?

What is Two Harbors Investment Corp (TWO) fair value?

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. The fair price of Two Harbors Investment Corp (TWO) is between 13.42 to 16.57 according to relative valuation methord.

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

What is the current P/B ratio for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

As of Dec 16 2025, Two Harbors Investment Corp (TWO) has a P/B ratio of 0.89. This indicates that the market values TWO at 0.89 times its book value.

What is the current FCF Yield for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

As of Dec 16 2025, Two Harbors Investment Corp (TWO) has a FCF Yield of 0.00%. This means that for every dollar of Two Harbors Investment Corp’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

As of Dec 16 2025, Two Harbors Investment Corp (TWO) has a Forward P/E ratio of 7.11. This means the market is willing to pay $7.11 for every dollar of Two Harbors Investment Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

As of Dec 16 2025, Two Harbors Investment Corp (TWO) has a Forward P/S ratio of 0.00. This means the market is valuing TWO at $0.00 for every dollar of expected revenue over the next 12 months.

TWO Valuation

TWO Valuation

TWO Relative Valuation

Historical Valuation

Competitors Valuation Multiple

Performance Decomposition

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Frequently Asked Questions

Is Two Harbors Investment Corp (TWO) currently overvalued or undervalued?

What is Two Harbors Investment Corp (TWO) fair value?

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

What is the current P/B ratio for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

What is the current FCF Yield for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

What is the current Forward P/E ratio for Two Harbors Investment Corp (TWO) as of Dec 16 2025?

What is the current Forward P/S ratio for Two Harbors Investment Corp (TWO) as of Dec 16 2025?