Redwood Trust, Inc. (RWT) Financial Ratios
30 years of historical data (1996–2025) · Real Estate · REIT - Mortgage
EV/EBITDA
↓
21.15
↓-95% vs avg
5yr avg: 388.95
30Y Low12.3·High88.1
P/FCF
N/A
—
5yr avg: N/A
30Y Low0.2·High44.8
P/B Ratio
↓
0.66
↓-23% vs avg
5yr avg: 0.85
30Y Low0.1·High1.7
ROE
↓
-6.5%
↑-415% vs avg
5yr avg: 2.0%
30Y Low-137%·High33%
Debt/EBITDA
↓
20.80
↓-94% vs avg
5yr avg: 372.40
30Y Low11.5·High48.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RWT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Redwood Trust, Inc. currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $622M | $720M | $863M | $862M | $792M | $1.9B | $1.0B | $2.3B | $1.7B | $1.5B | $1.5B |
| Enterprise Value | $22.5B | $22.6B | $17.0B | $13.4B | $12.0B | $14.3B | $9.4B | $17.9B | $11.9B | $7.0B | $5.5B |
| P/E Ratio → | -7.90 | — | 20.41 | — | — | 5.57 | — | 11.33 | 13.83 | 9.26 | 9.88 |
| P/S Ratio | 0.56 | 0.65 | 3.56 | 5.43 | — | 3.47 | — | 6.91 | 7.67 | 6.32 | 5.74 |
| P/B Ratio | 0.66 | 0.73 | 0.73 | 0.72 | 0.73 | 1.35 | 0.90 | 0.13 | 0.14 | 0.22 | 0.29 |
| P/FCF | — | — | — | — | — | — | — | 23.76 | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
RWT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Redwood Trust, Inc.'s enterprise value stands at 21.1x EBITDA, 95% below its 5-year average of 389.0x. The Real Estate sector median is 17.0x, placing the stock at a 24% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 20.44 | 70.16 | 84.57 | — | 26.51 | — | 54.60 | 54.88 | 29.46 | 21.05 |
| EV / EBITDA | 21.15 | 21.24 | 228.31 | 1269.43 | — | 36.83 | — | 57.88 | 88.08 | 43.16 | 29.43 |
| EV / EBIT | 21.35 | 21.44 | — | — | 32.63 | — | — | — | 32.08 | 26.90 | 23.32 |
| EV / FCF | — | — | — | — | — | — | — | 187.61 | — | — | — |
RWT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Redwood Trust, Inc. earns an operating margin of 95.3%, significantly above the Real Estate sector average of 24.8%. Operating margins have expanded from 6.7% to 95.3% over the past 3 years, signaling improving operational efficiency. A negative ROE of -6.5% indicates the company is currently destroying shareholder equity. ROIC of 3.9% represents below-average returns on invested capital.
Margins
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 | 95.6% | 95.6% | 86.1% | 86.3% | 189.2% | 95.9% | 104.0% | 97.0% | 96.5% | 100.0% | 94.3% |
| Operating Margin | 95.3% | 95.3% | 30.7% | 6.7% | 795.0% | 66.0% | 138.2% | 64.6% | 61.7% | 67.7% | 71.1% |
| Net Profit Margin | -6.3% | -6.3% | 22.3% | -1.4% | 739.8% | 59.2% | 183.0% | 51.7% | 55.3% | 58.7% | 50.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -6.5% | -6.5% | 4.5% | -0.2% | -13.2% | 25.6% | -6.3% | 1.2% | 1.3% | 2.4% | 4.2% |
| ROA | -0.3% | -0.3% | 0.3% | -0.0% | -1.2% | 2.6% | -4.1% | 1.1% | 1.3% | 2.2% | 2.2% |
| ROIC | 3.9% | 3.9% | 0.4% | 0.1% | -1.0% | 2.3% | -1.6% | 0.6% | 0.6% | 1.1% | 1.8% |
| ROCE | 6.1% | 6.1% | 0.5% | 0.1% | -1.3% | 2.8% | -3.5% | 1.7% | 1.9% | 3.4% | 4.2% |
RWT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Redwood Trust, Inc. carries a Debt/EBITDA ratio of 20.8x, which is highly leveraged (163% above the sector average of 7.9x). Net debt stands at $21.9B ($22.2B total debt minus $256M cash). Interest coverage of just 1.0x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 22.56 | 22.56 | 13.80 | 10.68 | 10.61 | 9.29 | 7.97 | 0.91 | 0.90 | 0.84 | 0.82 |
| Debt / EBITDA | 20.80 | 20.80 | 220.02 | 1215.62 | — | 33.17 | — | 51.19 | 77.07 | 34.79 | 22.56 |
| Net Debt / Equity | — | 22.30 | 13.60 | 10.44 | 10.37 | 8.97 | 7.55 | 0.90 | 0.89 | 0.82 | 0.78 |
| Net Debt / EBITDA | 20.56 | 20.56 | 216.73 | 1187.88 | — | 32.01 | — | 50.55 | 75.77 | 33.90 | 21.41 |
| Debt / FCF | — | — | — | — | — | — | — | 163.84 | — | — | — |
| Interest Coverage | 0.96 | 0.96 | 0.09 | 0.02 | 0.67 | -0.04 | -0.04 | -0.02 | 1.55 | 2.40 | 2.65 |
RWT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.28x is below 1.0, meaning current liabilities exceed current assets.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.28 | 0.28 | — | — | — | — | — | 0.31 | 0.07 | 0.07 | 0.23 |
| Quick Ratio | 0.28 | 0.28 | — | — | — | — | -0.01 | 0.31 | 0.07 | 0.07 | 0.22 |
| Cash Ratio | 0.19 | 0.19 | — | — | — | — | 1.08 | 0.18 | 0.07 | 0.07 | 0.23 |
| Asset Turnover | — | 0.05 | 0.01 | 0.01 | -0.00 | 0.04 | -0.03 | 0.02 | 0.02 | 0.03 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | 1.51 | — | 1.90 | — | 2.68 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
RWT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Redwood Trust, Inc. returns 23.6% to shareholders annually — split between a 15.3% dividend yield and 8.3% buyback yield.
Dividends
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 | 15.3% | 13.7% | 10.8% | 10.3% | 14.1% | 4.9% | 8.4% | 5.7% | 5.8% | 5.8% | 5.9% |
| Payout Ratio | — | — | 172.0% | — | — | 28.7% | — | 76.5% | 80.9% | 62.9% | 67.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 4.9% | — | — | 18.0% | — | 8.8% | 7.2% | 10.8% | 10.1% |
| FCF Yield | — | — | — | — | — | — | — | 4.2% | — | — | — |
| Buyback Yield | 8.3% | 7.2% | 0.0% | 0.0% | 7.1% | 0.0% | 2.2% | 0.0% | 1.0% | 0.6% | 1.9% |
| Total Shareholder Yield | 23.6% | 20.9% | 10.8% | 10.3% | 21.2% | 4.9% | 10.6% | 5.7% | 6.8% | 6.4% | 7.8% |
| Shares Outstanding | — | $130M | $132M | $116M | $117M | $142M | $114M | $137M | $110M | $102M | $98M |
Peer Comparison
Compare RWT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RWTYou | $622M | -7.9 | 21.1 | — | 95.6% | 95.3% | -6.5% | 3.9% | 20.8 |
 MFA | $956M | 5.6 | 17.0 | 12.5 | 96.2% | 78.8% | 9.6% | 4.4% | 15.9 |
 MITT | $248M | 8.7 | 18.2 | 4.2 | 94.7% | 96.9% | 8.8% | 4.5% | 17.9 |
 SACH | $44M | 23.7 | 11.0 | 17.8 | 97.8% | 58.8% | 3.5% | 4.8% | 9.8 |
 BXMT | $3B | 28.1 | 16.2 | 11.0 | 76.9% | 71.6% | 3.0% | 4.3% | 14.0 |
 RC | $264M | -1.1 | 47.5 | — | 87.7% | 24.2% | -12.8% | 1.2% | 47.4 |
 NLY | $16B | 7.6 | 18.3 | — | 99.9% | 102.6% | 14.1% | 6.4% | 16.3 |
 AGNC | $12B | 7.1 | 2.1 | 17.9 | 100.0% | 236.3% | 15.1% | 33.8% | 0.0 |
 TWO | $1B | -2.8 | 197.7 | 14.4 | 97.9% | 68.7% | -23.2% | 3.1% | 188.0 |
 IVR | $568M | 5.2 | 19.1 | 3.6 | 96.7% | 94.5% | 13.3% | 4.0% | 17.5 |
 CIM | $1B | 4.8 | 18.0 | — | 94.9% | 93.2% | 9.0% | 4.1% | 16.9 |
| Real Estate Median | — | 24.1 | 17.0 | 15.4 | 49.3% | 24.8% | 3.7% | 2.7% | 7.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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RWT — Frequently Asked Questions
Quick answers to the most common questions about buying RWT stock.
What is Redwood Trust, Inc.'s P/E ratio?
Redwood Trust, Inc.'s current P/E ratio is -7.9x. The historical average is 13.0x.
What is Redwood Trust, Inc.'s EV/EBITDA?
Redwood Trust, Inc.'s current EV/EBITDA is 21.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 36.1x.
What is Redwood Trust, Inc.'s ROE?
Redwood Trust, Inc.'s return on equity (ROE) is -6.5%. The historical average is 2.6%.
Is RWT stock overvalued?
Based on historical data, Redwood Trust, Inc. is trading at a P/E of -7.9x. Compare with industry peers and growth rates for a complete picture.
What is Redwood Trust, Inc.'s dividend yield?
Redwood Trust, Inc.'s current dividend yield is 15.26%.
What are Redwood Trust, Inc.'s profit margins?
Redwood Trust, Inc. has 95.6% gross margin and 95.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Redwood Trust, Inc. have?
Redwood Trust, Inc.'s Debt/EBITDA ratio is 20.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.