Latest Ratios: P/E Ratio -7.5x · EV/EBITDA 21.1x · ROE -6.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $591M | $720M | $863M | $862M | $792M | $1.9B | $1.0B | $2.3B | $1.7B | $1.5B | $1.5B |
| Enterprise Value | $22.5B | $22.6B | $17.0B | $13.4B | $12.0B | $14.3B | $9.4B | $17.9B | $11.9B | $7.0B | $5.5B |
| P/E Ratio → | -7.49 | — | 20.41 | — | — | 5.57 | — | 11.33 | 13.83 | 9.26 | 9.88 |
| P/S Ratio | 0.53 | 0.65 | 3.56 | 5.43 | — | 3.47 | — | 6.91 | 7.67 | 6.32 | 5.74 |
| P/B Ratio | 0.63 | 0.73 | 0.73 | 0.72 | 0.73 | 1.35 | 0.90 | 0.13 | 0.14 | 0.22 | 0.29 |
| P/FCF | — | — | — | — | — | — | — | 23.76 | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 20.44 | 70.16 | 84.57 | — | 26.51 | — | 54.60 | 54.88 | 29.46 | 21.05 |
| EV / EBITDA | 21.12 | 21.24 | 196.84 | 527.65 | — | 36.83 | — | 57.88 | 88.08 | 43.16 | 29.43 |
| EV / EBIT | 21.32 | 21.44 | 233.56 | — | 32.63 | — | — | — | 32.08 | 26.90 | 23.32 |
| EV / FCF | — | — | — | — | — | — | — | 187.61 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 95.6% | 95.6% | 86.1% | 86.3% | 189.2% | 95.9% | 104.0% | 97.0% | 96.5% | 100.0% | 94.3% |
| Operating Margin | 95.3% | 95.3% | 30.7% | 6.7% | 795.0% | 66.0% | 138.2% | 64.6% | 61.7% | 67.7% | 71.1% |
| Net Profit Margin | -6.3% | -6.3% | 22.3% | -1.4% | 739.8% | 59.2% | 183.0% | 51.7% | 55.3% | 58.7% | 50.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -6.5% | -6.5% | 4.5% | -0.2% | -13.2% | 25.6% | -6.3% | 1.2% | 1.3% | 2.4% | 4.2% |
| ROA | -0.3% | -0.3% | 0.3% | -0.0% | -1.2% | 2.6% | -4.1% | 1.1% | 1.3% | 2.2% | 2.2% |
| ROIC | 3.9% | 3.9% | 0.4% | 0.1% | -1.0% | 2.3% | -1.6% | 0.6% | 0.6% | 1.1% | 1.8% |
| ROCE | 6.1% | 6.1% | 0.5% | 0.1% | -1.3% | 2.8% | -3.5% | 1.7% | 1.9% | 3.4% | 4.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 22.56 | 22.56 | 13.80 | 10.68 | 10.61 | 9.29 | 7.97 | 0.91 | 0.90 | 0.84 | 0.82 |
| Debt / EBITDA | 20.80 | 20.80 | 189.69 | 505.28 | — | 33.17 | — | 51.19 | 77.07 | 34.79 | 22.56 |
| Net Debt / Equity | — | 22.30 | 13.60 | 10.44 | 10.37 | 8.97 | 7.55 | 0.90 | 0.89 | 0.82 | 0.78 |
| Net Debt / EBITDA | 20.56 | 20.56 | 186.85 | 493.75 | — | 32.01 | — | 50.55 | 75.77 | 33.90 | 21.41 |
| Debt / FCF | — | — | — | — | — | — | — | 163.84 | — | — | — |
| Interest Coverage | 0.96 | 0.96 | 0.09 | -0.00 | 0.67 | -0.04 | -0.04 | -0.02 | 1.55 | 2.40 | 2.65 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.28 | 0.28 | — | — | — | — | — | 0.31 | 0.07 | 0.07 | 0.23 |
| Quick Ratio | 0.28 | 0.28 | — | — | — | — | -0.01 | 0.31 | 0.07 | 0.07 | 0.22 |
| Cash Ratio | 0.19 | 0.19 | — | — | — | — | 1.08 | 0.18 | 0.07 | 0.07 | 0.23 |
| Asset Turnover | — | 0.05 | 0.01 | 0.01 | -0.00 | 0.04 | -0.03 | 0.02 | 0.02 | 0.03 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | 1.51 | — | 1.90 | — | 2.68 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 16.1% | 13.7% | 10.8% | 10.3% | 14.1% | 4.9% | 8.4% | 5.7% | 5.8% | 5.8% | 5.9% |
| Payout Ratio | — | — | 172.0% | — | — | 28.7% | — | 76.5% | 80.9% | 62.9% | 67.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 4.9% | — | — | 18.0% | — | 8.8% | 7.2% | 10.8% | 10.1% |
| FCF Yield | — | — | — | — | — | — | — | 4.2% | — | — | — |
| Buyback Yield | 8.8% | 7.2% | 0.0% | 0.0% | 7.1% | 0.0% | 2.2% | 0.0% | 1.0% | 0.6% | 1.9% |
| Total Shareholder Yield | 24.9% | 20.9% | 10.8% | 10.3% | 21.2% | 4.9% | 10.6% | 5.7% | 6.8% | 6.4% | 7.8% |
| Shares Outstanding | — | $130M | $132M | $116M | $117M | $142M | $114M | $137M | $110M | $102M | $98M |
Excessive leverage liquidity sensitivity
As reported in recent financial filings, Redwood Trust's P/FFO multiple remains difficult to ascertain due to persistent negative FFO, while the current P/B ratio of 0.64 suggests that the market is pricing the firm at a significant discount to its stated book value per share.
The inability to generate consistent positive FFO renders traditional REIT valuation multiples like P/FFO largely inapplicable for current analysis. Investors should monitor whether the discount to book value reflects a rational assessment of credit risk within the securitization pipeline or an overreaction to the company's recent earnings volatility.
According to quarterly financial data, Redwood Trust's NOI margin has experienced extreme fluctuations, collapsing from 96.7% in 2026Q1 to a negative 24.3% in 2025Q2, which indicates that the firm's core property-level profitability is highly susceptible to market-driven valuation adjustments and hedging costs.
The erratic nature of these margins suggests that Redwood's profitability is less a function of operational efficiency and more a reflection of mark-to-market accounting on its investment portfolio. This lack of stability complicates the assessment of organic growth, as the firm appears to struggle with converting its securitization volume into sustainable net income.
Based on the company's reported figures, the FFO payout ratio has frequently exceeded 100%, reaching as high as 134.1% in 2025Q1, which implies that the current dividend distribution is not supported by recurring operational cash flow and may be reliant on capital recycling or balance sheet liquidation.
The high payout ratio relative to FFO suggests that the dividend policy is currently unsustainable without a significant improvement in core earnings. Investors should monitor the company's ability to maintain these distributions, as the current trajectory appears to prioritize yield over the preservation of long-term equity value.
As indicated in recent balance sheet filings, Redwood Trust's debt-to-equity ratio has surged to 26.42x as of 2026Q1, a substantial increase from the 10.68x reported in 2023Q4, which highlights a heightened sensitivity to credit market liquidity and potential refinancing challenges in a volatile interest rate environment.
While a portion of this debt is non-recourse and tied to securitization vehicles, the sheer magnitude of the leverage ratio leaves the firm with minimal margin for error. The low interest coverage ratio, which has dipped into negative territory, warrants further investigation into the firm's ability to service its obligations during periods of market stress.
Market participants frequently misapply the standard P/E ratio to Redwood Trust, failing to account for the fact that GAAP net income is heavily distorted by non-cash mark-to-market adjustments on mortgage servicing rights and securitization tranches, which obscures the firm's true economic performance.
Using P/E for a mortgage REIT like Redwood ignores the fundamental reality that earnings are driven by fair value accounting rather than operational cash generation. Analysts should instead focus on 'Core Earnings' or 'Available for Distribution' to better understand the cash-generating capacity of the firm's conduit platform.
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RWT stock.
Redwood Trust, Inc.'s current P/E ratio is -7.5x. The historical average is 13.0x.
Redwood Trust, Inc.'s current EV/EBITDA is 21.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 36.1x.
Redwood Trust, Inc.'s return on equity (ROE) is -6.5%. The historical average is 2.6%.
Based on historical data, Redwood Trust, Inc. is trading at a P/E of -7.5x. Compare with industry peers and growth rates for a complete picture.
Redwood Trust, Inc.'s current dividend yield is 16.10%.
Redwood Trust, Inc. has 95.6% gross margin and 95.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Redwood Trust, Inc.'s Debt/EBITDA ratio is 20.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.