Two Harbors Investment Corp.

DB:2H2 Stock Report

Market Cap: €1.3b

Two Harbors Investment Valuation

Is 2H2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2H2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€19.79
Fair Value
36.6% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: 2H2 (€12.55) is trading below our estimate of fair value (€19.79)

Significantly Below Fair Value: 2H2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2H2?

Key metric: As 2H2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2H2. This is calculated by dividing 2H2's market cap by their current earnings.
What is 2H2's PE Ratio?
PE Ratio5.4x
EarningsUS$251.68m
Market CapUS$1.38b

Price to Earnings Ratio vs Peers

How does 2H2's PE Ratio compare to its peers?

The above table shows the PE ratio for 2H2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.4x
HYQ Hypoport
43.8x27.9%€1.3b
FTK flatexDEGIRO
16.4x9.0%€1.9b
MLP MLP
11.9x7.8%€764.3m
GLJ Grenke
9.5x24.6%€708.6m
2H2 Two Harbors Investment
5.4x-13.6%€1.4b

Price-To-Earnings vs Peers: 2H2 is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does 2H2's PE Ratio compare vs other companies in the Global Mortgage REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2H2 5.4xIndustry Avg. 11.3xNo. of Companies4PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2H2 is good value based on its Price-To-Earnings Ratio (5.4x) compared to the Global Mortgage REITs industry average (10.7x).

Price to Earnings Ratio vs Fair Ratio

What is 2H2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2H2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio8.9x

Price-To-Earnings vs Fair Ratio: 2H2 is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2H2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€12.53
€13.24
+5.6%
7.3%€14.57€11.66n/a8
Feb ’26€12.24
€13.14
+7.4%
7.3%€14.47€11.58n/a8
Jan ’26€11.12
€12.96
+16.6%
9.1%€14.18€10.87n/a8
Dec ’25€10.95
€13.13
+20.0%
9.2%€14.29€10.96n/a8
Nov ’25€10.37
€13.03
+25.7%
10.8%€14.53€10.61n/a8
Oct ’25€11.73
€13.21
+12.7%
4.7%€14.15€12.12n/a7
Sep ’25€12.74
€13.15
+3.3%
3.7%€13.61€12.25n/a7
Aug ’25€12.28
€13.36
+8.8%
3.7%€13.90€12.51n/a6
Jul ’25€12.04
€13.19
+9.6%
6.0%€13.89€11.57n/a6
Jun ’25€11.80
€13.13
+11.3%
6.3%€13.98€11.65n/a6
May ’25€11.80
€13.13
+11.2%
6.3%€13.98€11.65n/a6
Apr ’25€12.20
€13.22
+8.4%
3.9%€13.84€12.46n/a6
Mar ’25€11.70
€13.16
+12.4%
4.9%€13.88€12.03n/a7
Feb ’25€11.70
€13.16
+12.4%
4.9%€13.88€12.03€12.247
Jan ’25€12.60
€13.04
+3.5%
12.2%€15.59€10.09€11.127
Dec ’24€12.90
€12.36
-4.2%
9.7%€13.99€10.26€10.956
Nov ’24€11.40
€12.91
+13.3%
10.7%€14.17€10.39€10.376
Oct ’24€12.50
€13.65
+9.2%
5.4%€14.97€12.63€11.736
Sep ’24€12.80
€13.25
+3.5%
5.2%€14.62€12.33€12.747
Aug ’24€12.40
€12.85
+3.6%
6.2%€14.46€11.75€12.287
Jul ’24€12.70
€13.45
+5.9%
6.0%€14.92€12.12€12.047
Jun ’24€11.90
€13.45
+13.0%
6.0%€14.92€12.12€11.807
May ’24€12.50
€15.00
+20.0%
8.5%€17.20€13.13€11.808
Apr ’24€13.43
€16.34
+21.6%
4.8%€17.80€14.99€12.208
Mar ’24€15.07
€16.34
+8.4%
4.8%€17.80€14.99€11.708
Feb ’24€16.53
€15.44
-6.6%
6.2%€16.59€13.83€11.707
Analyst Price Target
Consensus Narrative from 8 Analysts
€13.03
Fair Value
3.7% undervalued intrinsic discount
8
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/12 05:14
End of Day Share Price 2025/02/12 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Two Harbors Investment Corp. is covered by 30 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Bruce HartingBarclays
Merrill RossBGB Securities, Inc.
Kenneth BruceBofA Global Research