Redwood Trust, Inc. 9.125% Seni (RWTN) 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

-957.7%

-$195.98

vs $22.85 price

Levered DCF

-$203.54

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.14

Distress zone

Rating

C-

Overall 1 / 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	-40.21×	79.03×	-227.45×	-17.5×	10.56×	-4.89×	17.14×	18.67×
P/B	2.87×	2.81×	2.42×	2.71×	2.35×	2.57×	1.54×	1.6×
P/S	10.26×	13.77×	18.34×	-132.69×	6.04×	-8.96×	8.59×	9.97×
EV / EBITDA	-1,487.72×	1,659.41×	517.12×	414.65×	426.98×	628.6×	862.63×	7,615.99×
Gross margin	89.7%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Operating margin	-9.7%	44.6%	20.4%	705.8%	70.1%	134.2%	67.7%	60.5%
Net margin	-25.5%	22.3%	-1.4%	739.8%	59.2%	183.0%	51.7%	53.6%
Current ratio	0.08×	0.34×	3.39×	3.11×	3.81×	7.12×	1.99×	2.82×
Debt / equity	22.68×	14.1×	9.54×	8.97×	7.86×	7.67×	7.37×	5.92×
Interest coverage	-1.47×	0.13×	0×	0×	0×	0×	0×	0×
Dividend yield	3.8%	3.0%	3.2%	3.8%	2.8%	2.9%	4.6%	4.5%
Payout ratio	-151.3%	185.0%	-4115.0%	-68.3%	28.7%	-14.4%	76.5%	83.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-7.1%	4.5%	-0.2%	-15.1%	23.1%	-52.4%	9.3%	8.6%
Return on invested capital	-0.1%	0.4%	0.2%	-1.1%	2.5%	-4.1%	1.2%	1.0%
Return on assets	-0.3%	0.3%	-0.0%	-1.3%	2.2%	-5.6%	0.9%	1.0%
Free cash flow yield	-358.1%	-175.5%	-69.3%	-4.7%	-174.8%	-17.7%	-41.5%	-74.8%
Earnings yield	-2.5%	1.6%	-0.1%	-5.6%	9.8%	-20.4%	6.0%	5.4%
Enterprise value	$24.9B	$19.8B	$14.1B	$12.4B	$13.7B	$10.9B	$16.1B	$10B
Net debt / EBITDA	-1,318.99×	1,379.15×	410.49×	316.53×	325.48×	464.43×	711.85×	5,968.25×
Cash conversion cycle (days)	0	322	396	-1,894	93	0	0	0