Redwood Trust, Inc.
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$24.91
FAIR PRICE
$36.48
MARGIN
$11.57
P/E Ratio
N/A
Div. Yield
10.16%
ROE
-7.5%
Average
Market Cap
$3B
Mid-cap
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FPI RATING
Low debt levels, but expensive valuation relative to fundamentals and volatile earnings pattern.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$29.18
Fair price × 0.80
DISTANCE
17.2%
Price to entry level
At the current price of $24.91, RWT-PA trades 17.2% below the conservative entry level of $29.18. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate RWT-PA's fair price
Redwood Trust, Inc.'s fair price of $36.48 is derived from a blended model that combines DCF analysis (50%), relative valuation against Real Estate peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $24.91, RWT-PA trades 46.5% below its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting RWT-PA's risk profile.
RELATIVE · 30%
Comparing RWT-PA's valuation multiples against Real Estate peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for RWT-PA, weighted by recency and analyst accuracy.
TRY IT YOURSELF
Want to test your own assumptions? Use our free calculators to estimate RWT-PA's fair value with your own inputs.
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What is the fair price of RWT-PA?+
Based on our blended model combining DCF analysis (50%), relative valuation against Real Estate peers (30%), and analyst consensus (20%), the fair price for Redwood Trust, Inc. is $36.48. At the current market price of $24.91, RWT-PA trades 46.5% below its calculated fair value.
Is RWT-PA overvalued or undervalued?+
Redwood Trust, Inc. is currently undervalued based on our valuation model. The stock trades at $24.91, which is 46.5% below the fair price of $36.48.
What is the margin of safety for RWT-PA?+
With a 20% margin of safety applied to the fair price of $36.48, the conservative entry level for RWT-PA is $29.18. At the current market price of $24.91, the stock trades 17.2% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is RWT-PA's fair price updated?+
We update fair price calculations for RWT-PA daily after market close. The current fair price of $36.48 incorporates the latest market data and sector multiples.
What factors affect RWT-PA's fair price calculation?+
RWT-PA's fair price of $36.48 is derived from DCF analysis (50% weight), relative valuation against Real Estate peers (30% weight), and analyst consensus (20% weight)., ROE of -7.5%, and dividend yield of 10.16%.
Is RWT-PA a good buy right now?+
At $24.91, RWT-PA trades 46.5% below our fair value estimate of $36.48. The stock is currently undervalued. ROE stands at -7.5% (average). Fair Price Index provides valuation data — always do your own research before investing.
Does RWT-PA pay dividends?+
RWT-PA has a dividend yield of 10.16%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.