Starwood Property Trust, Inc. (STWD) 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

+268.3%

$46.27

vs $12.57 price

Levered DCF

-$59.06

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.04

Distress zone

Rating

B-

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	14.76×	16.77×	19.64×	5.93×	15.78×	16.64×	13.73×	13.59×
P/B	0.89×	0.94×	1.04×	0.8×	1.14×	1.21×	1.48×	1.14×
P/S	3.23×	2.97×	3.17×	3.33×	5.85×	4.79×	5.27×	4.7×
EV / EBITDA	15.02×	8.16×	7.96×	7.91×	13.79×	13.2×	15.48×	16.31×
Gross margin	80.5%	86.2%	85.8%	80.5%	62.2%	61.5%	64.4%	53.1%
Operating margin	76.2%	80.5%	68.9%	68.4%	67.1%	56.6%	65.8%	55.6%
Net margin	21.9%	17.6%	16.5%	56.1%	37.7%	29.2%	38.7%	34.7%
Current ratio	0.09×	0×	0.36×	0×	0×	0.42×	0×	0.02×
Debt / equity	3.25×	1.4×	1.42×	1.5×	1.23×	1.56×	2.51×	2.34×
Interest coverage	1.12×	1.22×	0.98×	1.33×	1.79×	1.53×	1.7×	1.52×
Dividend yield	11.0%	10.2%	9.2%	11.4%	8.0%	10.0%	7.8%	9.8%
Payout ratio	162.5%	172.3%	177.2%	67.9%	123.7%	164.9%	105.6%	132.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.1%	5.6%	5.4%	13.5%	7.4%	7.4%	10.8%	8.4%
Return on invested capital	2.1%	185.3%	3.0%	80.4%	58.5%	37.5%	80.5%	4.0%
Return on assets	0.7%	0.6%	0.5%	1.1%	0.5%	0.4%	0.7%	0.6%
Free cash flow yield	11.7%	10.2%	7.7%	3.6%	-14.6%	18.7%	-0.6%	10.1%
Earnings yield	6.8%	5.9%	5.2%	16.8%	6.4%	6.1%	7.3%	7.4%
Enterprise value	$27.7B	$14.7B	$15.2B	$14.6B	$14.2B	$11.9B	$18.2B	$15.7B
Net debt / EBITDA	11.73×	4.79×	4.54×	5.11×	7.05×	7.15×	9.56×	10.89×
Cash conversion cycle (days)	32	30	-272	-321	-119	-137	18	-169