Ellington Financial Valuation
Is EFC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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 EFC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: EFC ($12.4) is trading below our estimate of fair value ($15.98)
Significantly Below Fair Value: EFC is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for EFC?
Key metric: As EFC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is EFC's PE Ratio? | |
|---|---|
| PE Ratio | 10.4x |
| Earnings | US$107.93m |
| Market Cap | US$1.12b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | n/a |
| Enterprise Value/EBITDA | n/a |
| PEG Ratio | 0.7x |
Price to Earnings Ratio vs Peers
How does EFC's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 11x | ||
ARR ARMOUR Residential REIT | 8.7x | 64.4% | US$1.0b |
PMT PennyMac Mortgage Investment Trust | 9.3x | 8.4% | US$1.1b |
ORC Orchid Island Capital | 10.4x | -123.6% | US$614.2m |
FBRT Franklin BSP Realty Trust | 15.7x | 24.4% | US$1.1b |
EFC Ellington Financial | 10.4x | 15.2% | US$1.1b |
Price-To-Earnings vs Peers: EFC is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (11x).
Price to Earnings Ratio vs Industry
How does EFC's PE Ratio compare vs other companies in the US Mortgage REITs Industry?
| 0 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|
| 0 Companies | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: EFC is good value based on its Price-To-Earnings Ratio (10.4x) compared to the US Mortgage REITs industry average (10.5x).
Price to Earnings Ratio vs Fair Ratio
What is EFC'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 10.4x |
| Fair PE Ratio | 14.4x |
Price-To-Earnings vs Fair Ratio: EFC is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | US$12.40 | US$13.75 +10.9% | 4.2% | US$14.50 | US$12.50 | n/a | 7 |
| Nov ’25 | US$11.95 | US$13.75 +15.1% | 4.2% | US$14.50 | US$12.50 | n/a | 7 |
| Oct ’25 | US$12.58 | US$13.61 +8.2% | 4.6% | US$14.50 | US$12.50 | n/a | 7 |
| Sep ’25 | US$13.15 | US$13.50 +2.7% | 4.8% | US$14.50 | US$12.50 | n/a | 7 |
| Aug ’25 | US$12.65 | US$13.43 +6.2% | 5.8% | US$14.50 | US$12.00 | n/a | 7 |
| Jul ’25 | US$11.87 | US$13.50 +13.7% | 6.3% | US$14.50 | US$12.00 | n/a | 7 |
| Jun ’25 | US$12.12 | US$13.50 +11.4% | 6.3% | US$14.50 | US$12.00 | n/a | 7 |
| May ’25 | US$11.61 | US$13.54 +16.6% | 6.1% | US$14.50 | US$12.00 | n/a | 7 |
| Apr ’25 | US$11.62 | US$13.89 +19.6% | 6.9% | US$15.50 | US$12.50 | n/a | 7 |
| Mar ’25 | US$11.34 | US$14.18 +25.0% | 6.2% | US$15.50 | US$13.00 | n/a | 7 |
| Feb ’25 | US$12.47 | US$14.57 +16.9% | 5.0% | US$15.50 | US$13.50 | n/a | 7 |
| Jan ’25 | US$12.71 | US$14.57 +14.6% | 5.0% | US$15.50 | US$13.50 | n/a | 7 |
| Dec ’24 | US$13.12 | US$14.75 +12.4% | 4.3% | US$15.50 | US$14.00 | n/a | 6 |
| Nov ’24 | US$12.24 | US$14.75 +20.5% | 4.3% | US$15.50 | US$14.00 | US$11.95 | 6 |
| Oct ’24 | US$12.47 | US$14.43 +15.7% | 6.3% | US$15.50 | US$13.00 | US$12.58 | 7 |
| Sep ’24 | US$13.37 | US$14.38 +7.5% | 6.0% | US$15.50 | US$13.00 | US$13.15 | 8 |
| Aug ’24 | US$13.52 | US$14.34 +6.1% | 6.1% | US$15.50 | US$13.00 | US$12.65 | 8 |
| Jul ’24 | US$13.80 | US$14.09 +2.1% | 6.1% | US$15.50 | US$13.00 | US$11.87 | 8 |
| Jun ’24 | US$12.60 | US$14.09 +11.9% | 6.1% | US$15.50 | US$13.00 | US$12.12 | 8 |
| May ’24 | US$12.52 | US$14.28 +14.1% | 5.1% | US$15.50 | US$13.50 | US$11.61 | 8 |
| Apr ’24 | US$12.21 | US$14.66 +20.0% | 5.0% | US$15.50 | US$13.75 | US$11.62 | 8 |
| Mar ’24 | US$12.68 | US$14.66 +15.6% | 5.0% | US$15.50 | US$13.75 | US$11.34 | 8 |
| Feb ’24 | US$14.14 | US$14.59 +3.2% | 4.7% | US$15.50 | US$13.75 | US$12.47 | 8 |
| Jan ’24 | US$12.37 | US$15.03 +21.5% | 7.0% | US$17.00 | US$13.75 | US$12.71 | 8 |
| Dec ’23 | US$13.88 | US$15.03 +8.3% | 7.0% | US$17.00 | US$13.75 | US$13.12 | 8 |
| Nov ’23 | US$13.11 | US$15.16 +15.6% | 6.4% | US$17.00 | US$13.75 | US$12.24 | 8 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
VEF
SEK 2.2b
A venture capital firm specializing in early venture, emerging growth and growth capital investments.
VEFF.F
SEK 0.20
7D
0%
1Y
n/a
FinVolution Group
US$1.6b
Operates in the online consumer finance industry.
FINV
US$6.29
7D
8.1%
1Y
38.5%
ORIX
JP¥3.8t
Provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East.
IX
JP¥107.82
7D
-0.5%
1Y
18.6%