Redwood Trust Valuation
| RWT Stock | USD 6.59 0.09 1.35% |
At this time, the company appears to be undervalued. Redwood Trust holds a recent Real Value of $7.02 per share. The prevailing price of the company is $6.59. Our model determines the value of Redwood Trust from analyzing the company fundamentals such as Shares Outstanding of 126.68 M, operating margin of (0.02) %, and Return On Equity of -0.0869 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Redwood Trust's valuation include:
Price Book 0.88 | Enterprise Value | Price Sales 4.7067 | Forward PE 6.6094 | Enterprise Value Revenue 161.9512 |
Undervalued
Today
Please note that Redwood Trust's price fluctuation is slightly risky at this time. Calculation of the real value of Redwood Trust is based on 3 months time horizon. Increasing Redwood Trust's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Redwood Trust's intrinsic value may or may not be the same as its current market price of 6.59, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 6.59 | Real 7.02 | Target 6.75 | Hype 6.57 |
The intrinsic value of Redwood Trust's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Redwood Trust's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Redwood Trust helps investors to forecast how Redwood stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Redwood Trust more accurately as focusing exclusively on Redwood Trust's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Redwood Trust's intrinsic value based on its ongoing forecasts of Redwood Trust's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Redwood Trust's closest peers.
Redwood Trust Cash |
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Redwood Trust Total Value Analysis
Redwood Trust is at this time anticipated to have company total value of 21.56 B with market capitalization of 715.9 M, debt of 16.39 B, and cash on hands of 245.16 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Redwood Trust fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
21.56 B | 715.9 M | 16.39 B | 245.16 M |
Redwood Trust Investor Information
About 81.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.88. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Redwood Trust has Price/Earnings To Growth (PEG) ratio of 1.39. The entity recorded a loss per share of 0.83. The firm last dividend was issued on the 23rd of December 2025. Based on the key indicators related to Redwood Trust's liquidity, profitability, solvency, and operating efficiency, Redwood Trust is performing exceptionally good at this time. It has a great odds to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.34 | 0.35 |
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Redwood Trust Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of Redwood implies not a very effective usage of assets in February.Redwood Trust Profitability Analysis
Based on Redwood Trust's profitability indicators, Redwood Trust is yielding more profit at this time then in previous quarter. It has a moderate odds of reporting better profitability numbers in March. Profitability indicators assess Redwood Trust's ability to earn profits and add value for shareholders.Net Income | First Reported 1994-03-31 | Previous Quarter 500 K | Current Value 3 M | Quarterly Volatility 134.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.74 | 0.78 |
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| Operating Profit Margin | 0.34 | 0.35 |
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For Redwood Trust profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Redwood Trust to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Redwood Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Redwood Trust's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Redwood Trust over time as well as its relative position and ranking within its peers.
Redwood Trust Earnings per Share Projection vs Actual
The next projected EPS of Redwood Trust is estimated to be 0.1946 with future projections ranging from a low of 0.17 to a high of 0.2131. Redwood Trust's most recent 12-month trailing earnings per share (EPS TTM) is at -0.83. Please be aware that the consensus of earnings estimates for Redwood Trust is based on EPS before non-recurring items and includes expenses related to employee stock options.Redwood Trust Earnings Estimation Breakdown
The calculation of Redwood Trust's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Redwood Trust is estimated to be 0.1946 with the future projection ranging from a low of 0.17 to a high of 0.2131. Please be aware that this consensus of annual earnings estimates for Redwood Trust is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.17 Lowest | Expected EPS | 0.21 Highest |
Redwood Trust Earnings Projection Consensus
Suppose the current estimates of Redwood Trust's value are higher than the current market price of the Redwood Trust stock. In this case, investors may conclude that Redwood Trust is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Redwood Trust's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 8 | 53.04% | 0.0 | 0.1946 | -0.83 |
Redwood Trust Ownership Allocation
Redwood Trust owns a total of 126.68 Million outstanding shares. The majority of Redwood Trust outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Redwood Trust to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Redwood Trust. Please pay attention to any change in the institutional holdings of Redwood Trust as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Redwood Trust Profitability Analysis
The company reported the last year's revenue of 242.5 M. Total Income to common stockholders was 54 M with profit before taxes, overhead, and interest of 75 M.Redwood Trust Past Distributions to stockholders
About Redwood Trust Valuation
The stock valuation mechanism determines Redwood Trust's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Redwood Trust based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Redwood Trust. We calculate exposure to Redwood Trust's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Redwood Trust's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 240.2 M | 169 M | |
| Pretax Profit Margin | 0.27 | 0.38 | |
| Operating Profit Margin | 0.35 | 0.34 | |
| Net Profit Margin | 0.20 | 0.33 | |
| Gross Profit Margin | 0.78 | 0.74 |
A single share of Redwood Trust represents a small ownership stake in the entity. As a stockholder of Redwood, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Redwood Trust Dividends Analysis For Valuation
Dividend Payout Ratio is likely to gain to 2.23 in 2026, whereas Dividends Paid is likely to drop slightly above 90.2 M in 2026. . At this time, Redwood Trust's Retained Earnings are comparatively stable compared to the past year. Earnings Yield is likely to gain to 0.08 in 2026, despite the fact that Retained Earnings Total Equity is likely to grow to (1 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 114.9 M | 90.2 M | |
| Dividend Yield | 0.10 | 0.07 | |
| Dividend Payout Ratio | 2.13 | 2.23 | |
| Dividend Paid And Capex Coverage Ratio | (67.48) | (64.11) |
There are various types of dividends Redwood Trust can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Redwood shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Redwood Trust directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Redwood pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Redwood Trust by the value of the dividends paid out.
Redwood Trust Growth Indicators
Investing in growth stocks can be very risky. If the company such as Redwood Trust does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 132.1 M | |
| Quarterly Earnings Growth Y O Y | -0.526 | |
| Forward Price Earnings | 6.6094 |
Redwood Trust Current Valuation Indicators
Redwood Trust's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Redwood Trust's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Redwood Trust, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Redwood Trust's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Redwood Trust's worth.Additional Tools for Redwood Stock Analysis
When running Redwood Trust's price analysis, check to measure Redwood Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Redwood Trust is operating at the current time. Most of Redwood Trust's value examination focuses on studying past and present price action to predict the probability of Redwood Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redwood Trust's price. Additionally, you may evaluate how the addition of Redwood Trust to your portfolios can decrease your overall portfolio volatility.