Latest Ratios: P/E Ratio -2.8x · EV/EBITDA 197.4x · ROE -23.2%. (2007–2025 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 | $1.3B | $1.1B | $1.3B | $1.3B | $1.5B | $1.7B | $1.7B | $3.9B | $2.6B | $3.1B | $2.5B |
| Enterprise Value | $9.0B | $8.8B | $9.9B | $10.5B | $11.2B | $9.5B | $1.3B | $4.5B | $3.7B | $4.2B | $9.2B |
| P/E Ratio → | -2.77 | — | 4.99 | — | 7.40 | 13.42 | — | 15.72 | — | 8.98 | 7.07 |
| P/S Ratio | 2.10 | 1.81 | 1.58 | 2.08 | 120.19 | — | — | 2.06 | 3.74 | 3.65 | 4.98 |
| P/B Ratio | 0.70 | 0.61 | 0.63 | 0.60 | 0.69 | 0.63 | 0.56 | 0.79 | 0.62 | 0.86 | 0.73 |
| P/FCF | 14.27 | 12.30 | 15.40 | 43.17 | — | — | 189.50 | 8.84 | — | 24.97 | — |
| P/OCF | 14.27 | 12.30 | 6.66 | 3.88 | 2.43 | 4.06 | 2.76 | 3.71 | 3.76 | 5.04 | 10.36 |
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 | — | 14.54 | 11.73 | 16.42 | 891.16 | — | — | 2.39 | 5.22 | 4.96 | 18.41 |
| EV / EBITDA | 197.38 | 193.53 | 10.41 | 18.78 | 19.27 | 33.73 | — | 4.44 | 7.14 | 6.40 | 27.31 |
| EV / EBIT | 21.61 | 193.53 | 10.41 | 18.78 | 19.27 | 33.73 | — | 4.44 | 7.14 | 6.42 | 16.90 |
| EV / FCF | — | 99.06 | 114.19 | 340.64 | — | — | 143.93 | 10.26 | — | 33.94 | — |
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 | 97.9% | 97.9% | 104.5% | 88.4% | -646.6% | 160.4% | 114.6% | 92.9% | 87.1% | 90.9% | 85.2% |
| Operating Margin | 68.7% | 68.7% | 112.4% | 87.4% | 4623.6% | -196.3% | 159.9% | 54.7% | 86.5% | 77.4% | 67.2% |
| Net Profit Margin | -75.0% | -75.0% | 35.3% | -16.6% | 1747.1% | -131.0% | 189.0% | 17.1% | -6.3% | 41.6% | 70.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -23.2% | -23.2% | 13.8% | -4.8% | 8.9% | 6.4% | -40.5% | 7.0% | -1.1% | 10.0% | 10.1% |
| ROA | -3.9% | -3.9% | 2.4% | -0.8% | 1.7% | 1.2% | -5.9% | 1.0% | -0.2% | 1.6% | 2.0% |
| ROIC | 3.1% | 3.1% | 6.5% | 3.6% | 3.9% | 3.2% | -25.0% | 14.3% | 9.2% | 6.6% | 2.7% |
| ROCE | 16.9% | 16.9% | 34.0% | 18.5% | 17.2% | 2.4% | -5.0% | 3.2% | 2.3% | 2.9% | 1.9% |
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 | 4.79 | 4.79 | 4.28 | 4.50 | 4.76 | 3.24 | 0.31 | 0.24 | 0.34 | 0.42 | 2.09 |
| Debt / EBITDA | 188.01 | 188.01 | 9.54 | 17.71 | 17.85 | 31.71 | — | 1.16 | 2.82 | 2.34 | 21.13 |
| Net Debt / Equity | — | 4.31 | 4.04 | 4.17 | 4.45 | 2.82 | -0.14 | 0.13 | 0.25 | 0.31 | 1.97 |
| Net Debt / EBITDA | 169.50 | 169.50 | 9.01 | 16.40 | 16.67 | 27.60 | — | 0.62 | 2.03 | 1.69 | 19.92 |
| Debt / FCF | — | 86.76 | 98.79 | 297.47 | — | — | -45.57 | 1.43 | — | 8.97 | — |
| Interest Coverage | 0.09 | 0.09 | 1.57 | 0.87 | 2.26 | 3.15 | -4.92 | 1.43 | 1.00 | 1.85 | 2.45 |
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 | 0.13 | 0.13 | 0.85 | 0.90 | 0.86 | 1.11 | 53.12 | 72.01 | 55.75 | 209.39 | 137.27 |
| Quick Ratio | 0.13 | 0.13 | 0.85 | 0.90 | 0.86 | 1.11 | 53.12 | 72.01 | 55.75 | 209.39 | 137.27 |
| Cash Ratio | 0.10 | 0.10 | 0.82 | 0.89 | 0.81 | 0.99 | 52.49 | 71.09 | 55.24 | 200.93 | 136.03 |
| Asset Turnover | — | 0.06 | 0.07 | 0.05 | 0.00 | -0.01 | -0.04 | 0.05 | 0.02 | 0.03 | 0.02 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| 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 | 13.6% | 15.6% | 14.0% | 14.8% | 15.5% | 11.3% | 11.4% | 11.8% | 10.2% | 13.8% | 13.4% |
| Payout Ratio | — | — | 62.9% | — | 106.9% | 103.3% | — | 143.0% | — | 121.3% | 93.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 20.0% | — | 13.5% | 7.5% | — | 6.4% | — | 11.1% | 14.2% |
| FCF Yield | 7.0% | 8.1% | 6.5% | 2.3% | — | — | 0.5% | 11.3% | — | 4.0% | — |
| Buyback Yield | 0.1% | 0.2% | 0.8% | 1.6% | 3.4% | 16.0% | 0.1% | 0.0% | 0.0% | 0.0% | 2.5% |
| Total Shareholder Yield | 13.7% | 15.8% | 14.9% | 16.5% | 18.9% | 27.2% | 11.5% | 11.8% | 10.2% | 13.8% | 15.8% |
| Shares Outstanding | — | $104M | $113M | $96M | $96M | $75M | $68M | $67M | $52M | $47M | $44M |
MSR valuation and basis risk
Based on recent market data, Two Harbors trades at a price-to-book ratio of 0.72, which, according to financial filings, suggests the market is pricing in significant execution risk regarding the company's internalized mortgage servicing platform relative to its Agency RMBS-focused peers like Annaly Capital Management.
The current P/B discount appears to indicate that investors remain skeptical of the long-term value creation from the RoundPoint acquisition. This valuation gap warrants further investigation into whether the market is correctly discounting the intrinsic value of the MSR portfolio or simply applying a blanket discount due to the company's historical earnings volatility.
As reported in the latest quarterly figures, the company's NOI margin contracted to 55.7% in 2026Q1, a sharp decline from historical levels exceeding 100%, which suggests that rising financing costs and operational expenses are currently overwhelming the yield generated by the underlying mortgage-backed securities portfolio.
The compression in property-level profitability appears to be driven by the high cost of repo financing and the ongoing expense of maintaining the servicing platform. Investors should monitor whether this margin pressure is a temporary byproduct of the current interest rate environment or a structural shift in the company's core profitability profile.
According to recent balance sheet data, Two Harbors reported a debt-to-equity ratio of 4.79 in 2026Q1, which, based on historical trends, represents a notable departure from the higher leverage profiles typically maintained by mortgage REIT peers operating within the Agency RMBS space, indicating a potential defensive posture.
The variability in the company's leverage ratio suggests an active, perhaps reactive, approach to capital management in response to interest rate volatility. While the current ratio may appear lower than industry norms, it warrants further investigation to determine if this reflects a permanent deleveraging strategy or a temporary liquidity buffer.
As evidenced by the extreme swings in net income, ranging from a $433.2M loss in 2023Q4 to a $276.7M gain in 2024Q4, the standard P/E ratio is fundamentally misapplied to Two Harbors because it fails to account for non-cash mark-to-market adjustments on MSRs and interest rate hedges.
Using P/E to evaluate this REIT obscures the actual cash-generating capacity of the business, as GAAP results are heavily influenced by subjective Level 3 valuation inputs. Analysts should prioritize Earnings Available for Distribution (EAD) as a more accurate metric for assessing the company's true economic performance and dividend sustainability.
Includes 30+ ratios · 19 years · Updated daily
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Quick answers to the most common questions about buying TWO stock.
Two Harbors Investment Corp.'s current P/E ratio is -2.8x. The historical average is 21.7x.
Two Harbors Investment Corp.'s current EV/EBITDA is 197.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.7x.
Two Harbors Investment Corp.'s return on equity (ROE) is -23.2%. The historical average is 3.0%.
Based on historical data, Two Harbors Investment Corp. is trading at a P/E of -2.8x. Compare with industry peers and growth rates for a complete picture.
Two Harbors Investment Corp.'s current dividend yield is 13.58%.
Two Harbors Investment Corp. has 97.9% gross margin and 68.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Two Harbors Investment Corp.'s Debt/EBITDA ratio is 188.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.