Two Harbors Investment Corp.

NYSE:TWO Stock Report

Mkt Cap: US$1.5b

We’ve recently updated our valuation analysis.

Two Harbors Investment Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 TWO?

Other financial metrics that can be useful for relative valuation.

TWO 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-0.07x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TWO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.4x
LADR Ladder Capital
13.2x-6.2%US$1.4b
ARI Apollo Commercial Real Estate Finance
6.1x-18.5%US$1.8b
CMTG Claros Mortgage Trust
15.6x11.0%US$2.3b
RC Ready Capital
6.8x-1.6%US$1.5b
TWO Two Harbors Investment
3.5x-49.8%US$1.5b

Price-To-Earnings vs Peers: TWO is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (10.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.0%
n/an/an/a

Price-To-Earnings vs Industry: TWO is good value based on its Price-To-Earnings Ratio (3.5x) compared to the US Mortgage REITs industry average (8.7x)


Price to Earnings Ratio vs Fair Ratio

What is TWO'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.

TWO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.5x
Fair PE Ratio3.7x

Price-To-Earnings vs Fair Ratio: TWO is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (3.7x).


Share Price vs Fair Value

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

Below Fair Value: TWO ($17.59) is trading below our estimate of fair value ($18.92)

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


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 TWO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.59
US$16.75
-4.8%
6.2%US$18.00US$15.00n/a7
Jan ’24US$15.77
US$16.33
+3.6%
4.9%US$17.50US$15.00n/a6
Dec ’23US$16.52
US$16.08
-2.6%
3.8%US$17.00US$15.00n/a6
Nov ’23US$14.20
US$17.83
+25.6%
9.4%US$20.00US$16.00n/a6
Oct ’23US$13.28
US$20.83
+56.9%
4.3%US$22.00US$20.00n/a6
Sep ’23US$19.04
US$21.00
+10.3%
4.4%US$22.00US$20.00n/a7
Aug ’23US$21.64
US$21.57
-0.3%
6.0%US$24.00US$20.00n/a7
Jul ’23US$19.64
US$21.57
+9.8%
6.0%US$24.00US$20.00n/a7
Jun ’23US$21.44
US$21.43
-0.05%
6.0%US$24.00US$20.00n/a7
May ’23US$19.24
US$21.43
+11.4%
6.0%US$24.00US$20.00n/a7
Apr ’23US$21.28
US$22.57
+6.1%
8.2%US$26.00US$20.00n/a7
Mar ’23US$20.16
US$23.86
+18.3%
10.1%US$28.00US$20.00n/a7
Feb ’23US$22.80
US$25.14
+10.3%
8.4%US$28.00US$22.00US$18.287
Jan ’23US$23.08
US$26.14
+13.3%
5.6%US$28.00US$24.00US$15.777
Dec ’22US$23.20
US$26.14
+12.7%
5.6%US$28.00US$24.00US$16.527
Nov ’22US$26.04
US$27.67
+6.2%
4.5%US$30.00US$26.00US$14.206
Oct ’22US$25.72
US$27.29
+6.1%
5.4%US$30.00US$25.00US$13.287
Sep ’22US$26.28
US$27.86
+6.0%
8.0%US$32.00US$25.00US$19.047
Aug ’22US$25.64
US$28.14
+9.8%
7.5%US$32.00US$25.00US$21.647
Jul ’22US$30.32
US$29.86
-1.5%
3.8%US$32.00US$28.00US$19.647
Jun ’22US$29.12
US$30.00
+3.0%
4.0%US$32.00US$28.00US$21.447
May ’22US$31.20
US$29.29
-6.1%
6.5%US$32.00US$26.00US$19.247
Apr ’22US$29.52
US$28.86
-2.2%
7.0%US$32.00US$26.00US$21.287
Mar ’22US$28.76
US$27.86
-3.1%
4.5%US$30.00US$26.00US$20.167
Feb ’22US$24.48
US$26.71
+9.1%
5.6%US$29.00US$24.00US$22.807

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies