ARMOUR Residential REIT, Inc.

NYSE:ARR Stock Report

Market Cap: US$1.0b

ARMOUR Residential REIT Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: Insufficient data to calculate ARR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ARR's fair value for valuation analysis.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ARR. This is calculated by dividing ARR's market cap by their current earnings.
What is ARR's PE Ratio?
PE Ratio8.6x
EarningsUS$119.71m
Market CapUS$1.05b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ARR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
PMT PennyMac Mortgage Investment Trust
9.1x8.4%US$1.1b
FBRT Franklin BSP Realty Trust
15.6x24.4%US$1.1b
LADR Ladder Capital
15.4x11.9%US$1.5b
MFA MFA Financial
6.5x-4.9%US$1.1b
ARR ARMOUR Residential REIT
8.6x64.4%US$1.0b

Price-To-Earnings vs Peers: ARR is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
ARR 8.6xIndustry Avg. 10.6xNo. of Companies4PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARR is good value based on its Price-To-Earnings Ratio (8.6x) compared to the US Mortgage REITs industry average (10.6x).


Price to Earnings Ratio vs Fair Ratio

What is ARR'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.

ARR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.6x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: ARR is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.8x).


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 ARR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.43
US$20.50
+11.2%
2.0%US$21.00US$20.00n/a3
Nov ’25US$18.59
US$20.50
+10.3%
2.0%US$21.00US$20.00n/a3
Oct ’25US$19.96
US$20.50
+2.7%
2.0%US$21.00US$20.00n/a3
Sep ’25US$20.45
US$20.00
-2.2%
4.1%US$21.00US$19.00n/a3
Aug ’25US$20.26
US$20.00
-1.3%
4.1%US$21.00US$19.00n/a3
Jul ’25US$19.15
US$19.67
+2.7%
2.4%US$20.00US$19.00n/a3
Jun ’25US$19.34
US$19.00
-1.8%
5.3%US$20.00US$18.00n/a2
May ’25US$18.63
US$19.00
+2.0%
5.3%US$20.00US$18.00n/a2
Apr ’25US$19.62
US$19.25
-1.9%
3.9%US$20.00US$18.50n/a2
Mar ’25US$19.73
US$19.25
-2.4%
3.9%US$20.00US$18.50n/a2
Feb ’25US$19.57
US$19.25
-1.6%
3.9%US$20.00US$18.50n/a2
Jan ’25US$19.32
US$19.25
-0.4%
3.9%US$20.00US$18.50n/a2
Sep ’24US$24.65
US$27.50
+11.6%
9.1%US$30.00US$25.00US$20.452
Aug ’24US$25.65
US$27.50
+7.2%
9.1%US$30.00US$25.00US$20.262
Jul ’24US$26.65
US$27.50
+3.2%
9.1%US$30.00US$25.00US$19.152
Jun ’24US$25.60
US$27.50
+7.4%
9.1%US$30.00US$25.00US$19.342
May ’24US$25.05
US$27.92
+11.4%
7.6%US$30.00US$25.00US$18.633
Apr ’24US$26.25
US$27.92
+6.3%
7.6%US$30.00US$25.00US$19.623
Mar ’24US$26.35
US$27.92
+5.9%
7.6%US$30.00US$25.00US$19.733
Feb ’24US$32.35
US$27.92
-13.7%
7.6%US$30.00US$25.00US$19.573
Jan ’24US$28.15
US$29.17
+3.6%
4.0%US$30.00US$27.50US$19.323
Dec ’23US$29.70
US$29.17
-1.8%
4.0%US$30.00US$27.50US$18.493
Nov ’23US$26.75
US$29.17
+9.0%
4.0%US$30.00US$27.50US$15.163

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


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