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

2/6

Valuation Score 2/6

  • 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 (€19.65)

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 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 Ratio10.1x
SalesUS$119.48m
Market CapUS$1.21b

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 Average2.4x
HYQ Hypoport
2.8x11.0%€1.2b
FTK flatexDEGIRO
3.6x5.8%€1.6b
GLJ Grenke
1.3x14.1%€696.2m
PBB Deutsche Pfandbriefbank
1.8x11.2%€665.7m
2H2 Two Harbors Investment
10.1x-71.4%€1.2b

Price-To-Sales vs Peers: 2H2 is expensive based on its Price-To-Sales Ratio (10.1x) compared to the peer average (2.4x).

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 10.1xIndustry Avg. 5.3xNo. of Companies5PS03.26.49.612.816+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2H2 is expensive based on its Price-To-Sales Ratio (10.1x) compared to the Global Mortgage REITs industry average (5.3x).

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 Ratio10.1x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: 2H2 is expensive based on its Price-To-Sales Ratio (10.1x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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
€13.00
+15.8%
9.1%€14.22€10.90n/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€12.03n/a7
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
Jan ’24€14.82
€15.39
+3.8%
4.9%€16.49€14.13€12.606

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 Analysis2025/01/05 12:04
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

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