We’ve recently updated our valuation analysis.

Starwood Property Trust Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

STWD 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-1.2x

Price to Earnings Ratio vs Peers

How does STWD's PE Ratio compare to its peers?

STWD PE Ratio vs Peers
The above table shows the PE ratio for STWD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.6x
BXMT Blackstone Mortgage Trust
11.5x7.4%US$4.6b
HASI Hannon Armstrong Sustainable Infrastructure Capital
32.3x16.0%US$2.8b
CMTG Claros Mortgage Trust
12x12.4%US$1.9b
TWO Two Harbors Investment
6.5x0.7%US$1.4b
STWD Starwood Property Trust
8.9x-7.6%US$6.6b

Price-To-Earnings vs Peers: STWD is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (15.6x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: STWD is good value based on its Price-To-Earnings Ratio (8.9x) compared to the US Mortgage REITs industry average (10.8x)


Price to Earnings Ratio vs Fair Ratio

What is STWD'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.

STWD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.9x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: STWD is good value based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).


Share Price vs Fair Value

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

Below Fair Value: STWD ($21.41) is trading below our estimate of fair value ($31.32)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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