Chimera Investment Corporation

DB:4CR0 Stock Report

Market Cap: €1.1b

Chimera Investment Valuation

Is 4CR0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 4CR0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4CR0 (€14.09) is trading below our estimate of fair value (€16.11)

Significantly Below Fair Value: 4CR0 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 4CR0?

Key metric: As 4CR0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4CR0. This is calculated by dividing 4CR0's market cap by their current earnings.
What is 4CR0's PE Ratio?
PE Ratio4.5x
EarningsUS$270.71m
Market CapUS$1.21b

Price to Earnings Ratio vs Peers

How does 4CR0's PE Ratio compare to its peers?

The above table shows the PE ratio for 4CR0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50x
BFV Berliner Effektengesellschaft
59xn/a€816.3m
T2G Tradegate Wertpapierhandelsbank
86.6xn/a€2.2b
HYQ Hypoport
43.4x30.4%€1.3b
PBB Deutsche Pfandbriefbank
11x35.3%€679.1m
4CR0 Chimera Investment
4.5x-27.1%€1.2b

Price-To-Earnings vs Peers: 4CR0 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (49.9x).

Price to Earnings Ratio vs Industry

How does 4CR0's PE Ratio compare vs other companies in the Global Mortgage REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
4CR0 4.5xIndustry Avg. 10.7xNo. of Companies5PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4CR0 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the Global Mortgage REITs industry average (10.7x).

Price to Earnings Ratio vs Fair Ratio

What is 4CR0'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.

4CR0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.5x
Fair PE Ratio8.1x

Price-To-Earnings vs Fair Ratio: 4CR0 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.1x).

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 4CR0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€14.09
€15.10
+7.2%
3.1%€15.57€14.63n/a2
Nov ’25€13.69
€14.86
+8.6%
4.6%€15.55€14.18n/a2
Oct ’25€14.09
€14.59
+3.6%
4.6%€15.27€13.92n/a2
Sep ’25€13.92
€14.17
+1.8%
1.6%€14.40€13.95n/a2
Aug ’25€13.44
€13.46
+0.2%
2.6%€13.81€13.12n/a2
Jul ’25€11.81
€13.45
+13.9%
2.6%€13.79€13.10n/a2
Jun ’25€10.79
€13.63
+26.3%
2.6%€13.98€13.28n/a2
May ’25€11.73
€13.63
+16.2%
2.6%€13.98€13.28n/a2
Mar ’25€11.97
€14.49
+21.1%
4.8%€15.18€13.80n/a2
Feb ’25€13.26
€14.49
+9.3%
4.8%€15.18€13.80n/a2
Jan ’25€13.76
€15.33
+11.5%
7.4%€16.72€13.94n/a3
Dec ’24€14.24
€15.54
+9.1%
9.1%€16.95€14.12n/a2
Nov ’24€13.55
€16.14
+19.2%
4.3%€16.85€15.44€13.692
Oct ’24€15.12
€16.14
+6.8%
4.3%€16.85€15.44€14.092
Sep ’24€16.65
€15.78
-5.2%
4.2%€16.71€15.32€13.923
Aug ’24€17.01
€15.78
-7.2%
4.2%€16.71€15.32€13.443
Jul ’24€15.42
€15.78
+2.4%
4.2%€16.71€15.32€11.813
Jun ’24€13.46
€15.78
+17.3%
4.2%€16.71€15.32€10.793
May ’24€15.09
€17.88
+18.5%
4.7%€19.02€16.98€11.733
Apr ’24€14.95
€19.34
+29.4%
3.4%€19.81€18.40€12.513
Mar ’24€18.25
€19.34
+6.0%
3.4%€19.81€18.40€11.973
Feb ’24€20.19
€18.63
-7.7%
3.5%€19.56€18.16€13.263
Jan ’24€15.90
€21.06
+32.5%
12.5%€25.27€18.25€13.764
Dec ’23€19.52
€22.36
+14.5%
17.2%€27.76€16.96€14.244
Nov ’23€20.33
€22.36
+10.0%
17.2%€27.76€16.96€13.554

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

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