NexPoint Real Estate Finance, Inc. (NREF) 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

+90.4%

$28.74

vs $15.10 price

Levered DCF

$23.56

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.16

Distress zone

Rating

A-

Overall 4 / 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	3.29×	15.38×	26.25×	72.23×	3.21×	7.76×	0×	4.85×
P/B	0.33×	0.57×	0.76×	0.61×	0.53×	0.67×	0×	0×
P/S	1.98×	2.48×	6.44×	5.78×	1.3×	4.41×	5.14×	2.74×
EV / EBITDA	27.72×	56.36×	93.66×	136.16×	97.04×	0×	0×	47.95×
Gross margin	88.9%	84.9%	90.1%	89.1%	92.4%	100.0%	100.0%	67.7%
Operating margin	129.7%	76.8%	169.6%	134.9%	85.2%	0.0%	0.0%	56.6%
Net margin	83.3%	26.5%	33.2%	16.7%	44.0%	65.9%	0.0%	56.6%
Current ratio	0.31×	13.12×	21.17×	22.45×	28.29×	36.8×	0×	34.26×
Debt / equity	5.95×	10.01×	18.42×	19.78×	33.61×	44.98×	0×	0×
Interest coverage	3.83×	1.91×	1.38×	1.35×	2.8×	0×	0×	0×
Dividend yield	24.7%	17.0%	19.0%	14.2%	13.9%	9.6%	0.0%	0.0%
Payout ratio	58.7%	158.8%	368.7%	491.6%	41.0%	64.2%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.0%	6.1%	3.9%	1.8%	18.1%	10.0%	0.0%	0.0%
Return on invested capital	3.1%	1.6%	1.0%	0.7%	1.0%	0.0%	0.0%	1.0%
Return on assets	2.0%	0.5%	0.2%	0.1%	0.5%	0.2%	0.0%	1.0%
Free cash flow yield	9.2%	10.7%	11.6%	28.2%	38.8%	38.3%	0.0%	0.0%
Earnings yield	42.1%	10.7%	5.2%	2.9%	33.9%	14.9%	0.0%	20.6%
Enterprise value	$4.7B	$5.1B	$6.8B	$7.8B	$8.1B	$5.8B	$2.5B	$1.9B
Net debt / EBITDA	26.24×	53.34×	89.94×	132.09×	95.52×	0×	0×	45.52×
Cash conversion cycle (days)	-559	16,681	57,481	69,208	30,677	113,354	86	20,882