Two Harbors Investment Corp.

DB:2H2 Stock Report

Market Cap: €1.2b

Two Harbors Investment Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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.

Below Fair Value: 2H2 (€11.23) is trading below our estimate of fair value (€13.38)

Significantly Below Fair Value: 2H2 is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for 2H2. This is calculated by dividing 2H2's market cap by their current revenue.
What is 2H2's PS Ratio?
PS Ratio10.2x
SalesUS$119.48m
Market CapUS$1.22b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for 2H2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
HYQ Hypoport
3.3x11.5%€1.4b
FTK flatexDEGIRO
3.3x6.1%€1.5b
GLJ Grenke
1.4x14.1%€731.6m
PBB Deutsche Pfandbriefbank
1.9x12.0%€691.9m
2H2 Two Harbors Investment
10.2x-64.3%€1.2b

Price-To-Sales vs Peers: 2H2 is expensive based on its Price-To-Sales Ratio (10.2x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

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

1 CompanyPrice / SalesEstimated GrowthMarket Cap
2H2 10.2xIndustry Avg. 5.5xNo. of Companies6PS03.26.49.612.816+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2H2 is expensive based on its Price-To-Sales Ratio (10.2x) compared to the Global Mortgage REITs industry average (5.5x).

Price to Sales Ratio vs Fair Ratio

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

2H2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.2x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: 2H2 is expensive based on its Price-To-Sales Ratio (10.2x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

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€11.23
€13.15
+17.1%
9.2%€14.32€10.98n/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€12.03n/a7
Jan ’25€12.60
€13.04
+3.5%
12.2%€15.59€10.09n/a7
Dec ’24€12.90
€12.36
-4.2%
9.7%€13.99€10.26n/a6
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
Jan ’24€14.82
€15.39
+3.8%
4.9%€16.49€14.13€12.606
Dec ’23€15.62
€15.52
-0.7%
3.8%€16.40€14.47€12.906
Nov ’23€14.26
€18.23
+27.9%
9.4%€20.44€16.35€11.406

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

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