Ready Capital Corporation

NYSE:RC Stock Report

Market Cap: US$1.2b

Ready Capital Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RC ($7.26) is trading below our estimate of fair value ($7.27)

Significantly Below Fair Value: RC is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As RC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RC. This is calculated by dividing RC's market cap by their current revenue.
What is RC's PS Ratio?
PS Ratio8.7x
SalesUS$140.36m
Market CapUS$1.23b

Price to Sales Ratio vs Peers

How does RC's PS Ratio compare to its peers?

The above table shows the PS ratio for RC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.1x
ARI Apollo Commercial Real Estate Finance
7.8x3.5%US$1.2b
CIM Chimera Investment
2.6x-10.2%US$1.2b
DX Dynex Capital
11.7x-45.5%US$1.4b
TWO Two Harbors Investment
10.3x-71.4%US$1.2b
RC Ready Capital
8.7x41.7%US$1.2b

Price-To-Sales vs Peers: RC is expensive based on its Price-To-Sales Ratio (8.7x) compared to the peer average (8.1x).

Price to Sales Ratio vs Industry

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

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
No more companies available in this PS range
RC 8.7xIndustry Avg. 5.3xNo. of Companies5PS03.26.49.612.816+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RC is expensive based on its Price-To-Sales Ratio (8.7x) compared to the US Mortgage REITs industry average (5.3x).

Price to Sales Ratio vs Fair Ratio

What is RC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.7x
Fair PS Ratio3.2x

Price-To-Sales vs Fair Ratio: RC is expensive based on its Price-To-Sales Ratio (8.7x) compared to the estimated Fair Price-To-Sales Ratio (3.2x).

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 RC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$7.26
US$8.63
+18.8%
19.9%US$12.00US$6.75n/a6
Dec ’25US$7.37
US$8.79
+19.3%
20.9%US$12.00US$6.75n/a6
Nov ’25US$6.75
US$9.00
+33.3%
19.0%US$12.00US$7.00n/a6
Oct ’25US$7.44
US$9.29
+24.9%
16.2%US$12.00US$7.75n/a6
Sep ’25US$8.29
US$9.54
+15.1%
14.5%US$12.00US$7.75n/a6
Aug ’25US$9.12
US$9.67
+6.0%
14.5%US$12.00US$8.00n/a6
Jul ’25US$8.11
US$9.83
+21.2%
16.3%US$12.00US$8.00n/a6
Jun ’25US$8.30
US$10.00
+20.5%
15.0%US$12.00US$8.00n/a6
May ’25US$8.67
US$10.21
+17.8%
13.0%US$12.00US$8.00n/a7
Apr ’25US$8.96
US$10.44
+16.5%
13.2%US$12.00US$8.00n/a8
Mar ’25US$8.97
US$11.06
+23.3%
10.0%US$13.00US$9.50n/a8
Feb ’25US$9.50
US$11.69
+23.0%
10.7%US$14.00US$10.00n/a8
Jan ’25US$10.25
US$11.69
+14.0%
10.7%US$14.00US$10.00n/a8
Dec ’24US$10.50
US$11.81
+12.5%
10.4%US$14.00US$10.00US$7.378
Nov ’24US$9.51
US$12.06
+26.8%
10.5%US$14.00US$10.50US$6.758
Oct ’24US$10.11
US$12.56
+24.3%
10.6%US$14.50US$10.50US$7.448
Sep ’24US$11.00
US$12.56
+14.2%
10.6%US$14.50US$10.50US$8.298
Aug ’24US$11.31
US$12.81
+13.3%
11.5%US$15.00US$10.50US$9.128
Jul ’24US$11.28
US$12.63
+11.9%
13.1%US$15.00US$10.50US$8.118
Jun ’24US$9.93
US$12.63
+27.1%
13.1%US$15.00US$10.50US$8.308
May ’24US$10.50
US$12.94
+23.2%
12.6%US$15.00US$10.50US$8.678
Apr ’24US$10.17
US$13.69
+34.6%
10.8%US$16.00US$11.50US$8.968
Mar ’24US$11.05
US$13.88
+25.6%
9.8%US$16.00US$11.50US$8.978
Feb ’24US$13.35
US$14.13
+5.8%
10.4%US$16.00US$11.50US$9.508
Jan ’24US$11.14
US$14.25
+27.9%
10.8%US$16.00US$11.50US$10.258
Dec ’23US$13.42
US$14.31
+6.7%
11.2%US$16.00US$11.00US$10.508

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 08:47
End of Day Share Price 2024/12/20 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

Ready Capital Corporation is covered by 13 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Matthew HowlettB. Riley Securities, Inc.
Sarah BarcombBTIG
William CatherwoodBTIG