Ellington Financial (EFC): Valuation Update Following Book Value Disclosure and Dividend Announcement

Ellington Financial (EFC) updated investors with an estimated book value per share of $13.25 as of October 31, 2025. This estimate includes a $0.13 dividend set for distribution to shareholders on November 28.

See our latest analysis for Ellington Financial.

Ellington Financial’s latest dividend declaration and book value update arrive following a positive multi-quarter stretch for shareholders. The company’s 1-year total shareholder return stands at 24.9%, reflecting growing confidence in its capital management and income strategy. Its more modest short-term price momentum suggests a market that is pausing after this solid performance.

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With Ellington Financial trading just above its recent book value and still carrying a sizable discount to analyst price targets, investors have to ask whether the stock is cheap or if the market is already anticipating further gains.

Most Popular Narrative: 5.7% Undervalued

With Ellington Financial’s most popular narrative setting fair value at $14.53, shares at the last close of $13.70 are trading at a modest discount. Here is the context behind that consensus price expectation and the drivers behind this valuation call.

Proprietary technology, such as Ellington's automated non-QM loan origination portal, is streamlining loan acquisition and underwriting. This enables scalable growth and operational efficiency gains that are expected to support margin expansion and higher net earnings over time.

Read the complete narrative.

Want to see which financial forecasts give this narrative its edge? One hidden variable drives assumptions for double-digit growth and expanding margins. Intrigued by the bold outlook for future earnings and what makes analysts believe Ellington is still undervalued? Find out which surprising catalysts are shaping sentiment.

Result: Fair Value of $14.53 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent home price weakness or rising non-QM loan delinquencies could present challenges to Ellington’s growth story and put pressure on future earnings projections.

Find out about the key risks to this Ellington Financial narrative.

Build Your Own Ellington Financial Narrative

If you view the story from a different perspective or prefer to form your own conclusions, the data is available for you. It takes less than three minutes to build your version. Do it your way

A great starting point for your Ellington Financial research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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