Redwood Trust Valuation
| RWT Stock | USD 7.20 0.03 0.42% |
At this time, the company appears to be undervalued. Redwood Trust holds a recent Real Value of $7.99 per share. The prevailing price of the company is $7.2. Our model determines the value of Redwood Trust from analyzing the company fundamentals such as Operating Margin of 0.31 %, shares outstanding of 132.27 M, and Return On Equity of 0.0701 as well as examining its technical indicators and probability of bankruptcy.
Price Book 0.8203 | Enterprise Value 17.4 B | Price Sales 3.5487 | Forward PE 8.4459 | Trailing PE 12.8571 |
Undervalued
Today
Please note that Redwood Trust's price fluctuation is not too volatile 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 7.20, 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 7.2 | Real 7.99 | Target 8.64 | Hype 7.19 | Naive 7.33 |
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: Redwood Trust Total Value Analysis
Redwood Trust is at this time anticipated to have company total value of 17.4 B with market capitalization of 952.32 M, debt of 13.07 B, and cash on hands of 258.89 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 |
17.4 B | 952.32 M | 13.07 B | 258.89 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 0.82. 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 last dividend was issued on the 23rd of September 2024. Based on the key indicators related to Redwood Trust's liquidity, profitability, solvency, and operating efficiency, Redwood Trust is not in a good financial situation at this time. It has a very high odds of going through financial crisis in December.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 November.Redwood Trust Ownership Allocation
Redwood Trust owns a total of 132.27 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 147.12 M. Reported Net Loss for the year was (6.27 M) with loss before taxes, overhead, and interest of (27.55 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.Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California. Redwood Trust operates under REITMortgage classification in the United States and is traded on New York Stock Exchange. It employs 298 people.
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
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 | 116.3 M | |
| Quarterly Earnings Growth Y O Y | 45.372 | |
| Forward Price Earnings | 8.4459 |
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.