Rithm Capital Valuation

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

RITM.PRA ($25.47) is trading below our estimate of [[fair value]] ($57.24)

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

Below Fair Value: RITM.PRA ($25.47) is trading below our estimate of fair value ($57.24)

Significantly Below Fair Value: RITM.PRA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RITM.PRA?

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

The above table shows the Price to Earnings ratio for RITM.PRA. This is calculated by dividing RITM.PRA's market cap by their current earnings.
What is RITM.PRA's PE Ratio?
PE Ratio	12x
Earnings	US$484.30m
Market Cap	US$5.78b

RITM.PRA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does RITM.PRA's PE Ratio compare to its peers?

The above table shows the PE ratio for RITM.PRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.1x
STWD Starwood Property Trust	18.4x	23.9%	US$6.8b
ABR Arbor Realty Trust	10.9x	7.9%	US$3.0b
AGNC AGNC Investment	8.4x	29.9%	US$8.5b
MFA MFA Financial	6.7x	-3.0%	US$1.1b
RITM.PRA Rithm Capital	12x	21.1%	US$5.8b

Price-To-Earnings vs Peers: RITM.PRA is expensive based on its Price-To-Earnings Ratio (12x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RITM.PRA is expensive based on its Price-To-Earnings Ratio (12x) compared to the US Mortgage REITs industry average (10.6x).

Price to Earnings Ratio vs Fair Ratio

What is RITM.PRA'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.

RITM.PRA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12x
Fair PE Ratio	18.3x

Price-To-Earnings vs Fair Ratio: RITM.PRA is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

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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