PennyMac Mortgage Investment Trust

NYSE:PMT.PRC Stock Report

Market Cap: US$1.2b

PennyMac Mortgage Investment Trust Valuation

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

Below Fair Value: PMT.PRC ($20.62) is trading above our estimate of fair value ($9.29)

Significantly Below Fair Value: PMT.PRC is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PMT.PRC?

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

The above table shows the Price to Earnings ratio for PMT.PRC. This is calculated by dividing PMT.PRC's market cap by their current earnings.
What is PMT.PRC's PE Ratio?
PE Ratio9.3x
EarningsUS$125.10m
Market CapUS$1.17b

Price to Earnings Ratio vs Peers

How does PMT.PRC's PE Ratio compare to its peers?

The above table shows the PE ratio for PMT.PRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
ARR ARMOUR Residential REIT
8.7x64.4%US$1.0b
FBRT Franklin BSP Realty Trust
15.9x24.4%US$1.1b
LADR Ladder Capital
15.5x11.9%US$1.5b
MFA MFA Financial
6.7x-4.9%US$1.1b
PMT.PRC PennyMac Mortgage Investment Trust
9.3x8.4%US$1.2b

Price-To-Earnings vs Peers: PMT.PRC is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

How does PMT.PRC'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
PMT.PRC 9.3xIndustry Avg. 10.6xNo. of Companies4PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PMT.PRC is good value based on its Price-To-Earnings Ratio (9.3x) compared to the US Mortgage REITs industry average (10.6x).

Price to Earnings Ratio vs Fair Ratio

What is PMT.PRC'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.

PMT.PRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.3x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: PMT.PRC is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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