Redwood Trust, Inc.

DB:R2V Stock Report

Market Cap: €837.4m

Redwood Trust Valuation

Is R2V 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 R2V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€8.92
Fair Value
29.4% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: R2V (€6.3) is trading below our estimate of fair value (€8.92)

Significantly Below Fair Value: R2V is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for R2V?

Key metric: As R2V is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for R2V. This is calculated by dividing R2V's market cap by their current earnings.
What is R2V's PE Ratio?
PE Ratio12.3x
EarningsUS$70.61m
Market CapUS$868.00m

Price to Earnings Ratio vs Peers

How does R2V's PE Ratio compare to its peers?

The above table shows the PE ratio for R2V vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.1x
BFV Berliner Effektengesellschaft
60.7xn/a€833.7m
PBB Deutsche Pfandbriefbank
11.9x35.1%€736.9m
T2G Tradegate Wertpapierhandelsbank
85.6xn/a€2.1b
GLJ Grenke
10x24.6%€744.8m
R2V Redwood Trust
12.3x20.4%€868.0m

Price-To-Earnings vs Peers: R2V is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (42.1x).

Price to Earnings Ratio vs Industry

How does R2V's PE Ratio compare vs other companies in the Global Mortgage REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
R2V 12.3xIndustry Avg. 11.0xNo. of Companies4PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: R2V is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the Global Mortgage REITs industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is R2V'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.

R2V PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ratio15x

Price-To-Earnings vs Fair Ratio: R2V is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

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 R2V forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.30
€7.79
+23.7%
9.5%€9.05€6.20n/a10
Jan ’26€6.23
€7.93
+27.3%
8.2%€9.10€6.71n/a10
Dec ’25€6.76
€7.95
+17.7%
5.6%€8.97€7.55n/a10
Nov ’25€6.63
€7.77
+17.1%
5.7%€8.73€7.36n/a10
Oct ’25€6.79
€7.32
+7.8%
8.7%€8.53€6.29n/a10
Sep ’25€6.73
€7.07
+4.9%
7.7%€7.87€6.30n/a10
Aug ’25€6.44
€7.16
+11.1%
10.4%€8.34€6.02n/a11
Jul ’25€5.82
€7.02
+20.6%
11.7%€8.38€5.59n/a11
Jun ’25€5.75
€6.98
+21.5%
12.2%€8.30€5.53n/a10
May ’25€5.13
€7.13
+39.1%
12.0%€8.42€5.61n/a10
Apr ’25€5.77
€7.30
+26.5%
8.7%€8.29€6.45n/a10
Mar ’25€5.57
€7.35
+32.1%
9.3%€8.29€6.45n/a10
Feb ’25€6.23
€7.72
+23.9%
5.8%€8.27€6.89€6.3010
Jan ’25€6.83
€7.80
+14.3%
6.9%€8.36€6.97€6.2310
Dec ’24€6.61
€7.59
+14.9%
7.3%€8.21€6.84€6.768
Nov ’24€5.91
€7.96
+34.6%
9.8%€9.36€7.02€6.638
Oct ’24€6.65
€7.96
+19.7%
9.8%€9.36€7.02€6.798
Sep ’24€7.60
€7.69
+1.2%
9.4%€9.11€6.83€6.739
Aug ’24€6.78
€7.69
+13.5%
9.4%€9.11€6.83€6.449
Jul ’24€5.77
€7.39
+28.1%
12.9%€9.05€6.33€5.829
Jun ’24€5.58
€7.39
+32.4%
12.9%€9.05€6.33€5.759
May ’24€5.64
€7.70
+36.6%
11.7%€9.12€6.38€5.139
Apr ’24€6.13
€8.46
+38.2%
7.4%€9.41€7.52€5.779
Mar ’24€6.98
€8.50
+21.7%
9.6%€10.26€7.46€5.579
Feb ’24€7.68
€8.30
+8.0%
10.8%€10.14€6.91€6.239
Analyst Price Target
Consensus Narrative from 10 Analysts
€7.86
Fair Value
19.9% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/02 17:47
End of Day Share Price 2025/01/31 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

Redwood Trust, Inc. is covered by 21 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kenneth BruceBofA Global Research
Eric HagenBTIG
Michael DianaCantor Fitzgerald & Co.