KKR Real Estate Finance Trust Inc. (KREF) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2163.7%

$117.49

vs $5.19 price

Levered DCF

$5.21

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

-0.17

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-7.83×	53.16×	-16.96×	60.7×	9.38×	18.67×	12.92×	11.75×
P/B	0.47×	0.52×	0.65×	0.6×	0.87×	0.96×	1.04×	0.93×
P/S	1.2×	1.18×	1.39×	2.16×	4.12×	3.72×	4.25×	5.33×
EV / EBITDA	18.76×	12.25×	15.99×	25.09×	24.58×	25.84×	19.78×	26.94×
Gross margin	88.3%	91.6%	94.0%	91.4%	89.6%	91.2%	92.6%	89.3%
Operating margin	59.3%	75.3%	64.6%	61.6%	86.1%	67.3%	88.8%	86.7%
Net margin	-10.3%	6.0%	-4.7%	8.7%	48.0%	20.2%	32.6%	45.3%
Current ratio	0.32×	0.38×	0.1×	0.55×	0.18×	0.14×	0.11×	0.28×
Debt / equity	4×	3.64×	4.31×	3.92×	3.89×	3.65×	3.41×	3.5×
Interest coverage	0.84×	1.08×	0.93×	1.14×	2.15×	1.43×	1.54×	2.02×
Dividend yield	16.1%	14.7%	15.3%	14.5%	8.8%	9.7%	8.5%	8.5%
Payout ratio	-187.4%	289.7%	-454.3%	359.3%	75.8%	178.5%	110.6%	99.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-4.0%	2.6%	-2.2%	2.4%	10.1%	5.2%	8.0%	7.9%
Return on invested capital	4.2%	7.0%	5.6%	3.4%	3.7%	3.6%	4.8%	3.3%
Return on assets	-0.7%	0.6%	-0.4%	0.5%	2.0%	1.1%	1.8%	1.7%
Free cash flow yield	12.1%	17.8%	16.8%	14.8%	10.6%	11.5%	7.8%	7.3%
Earnings yield	-8.6%	5.1%	-3.4%	4.0%	11.6%	5.4%	7.7%	8.5%
Enterprise value	$5.2B	$5.5B	$6.8B	$6.9B	$6.2B	$4.7B	$4.9B	$4.9B
Net debt / EBITDA	16.76×	10.69×	13.85×	21.64×	19.91×	20.33×	15.07×	21.18×
Cash conversion cycle (days)	20	18	23	33	19	21	22	30