Ladder Capital Corp (LADR)
Valuation Overview•Is Ladder Capital Corp Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
LADR demonstrates strong business quality with robust profitability and healthy margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-10.3% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 61.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $96.3M | -23.3% | -10.3% | +1.8% | -1.0% | |
| EBITDA | $69.8M | — | -11.4% | — | — | |
| Net Income | $15.9M | -40.7% | -23.3% | — | -1.4% | |
| EPS (Diluted) | $0.13 | -40.7% | -23.3% | — | -3.4% | |
| Free Cash Flow | $45.4M | -35.0% | -6.6% | -4.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 71.5% | 76.0% | 75.2% | 74.8% |
| Operating Margin | 61.7% | 63.8% | 65.0% | 53.6% |
| Net Margin | 16.5% | 18.9% | 19.7% | 18.7% |
| FCF Margin | 22.4% | 27.6% | 24.9% | 31.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.22 | $0.22 | +0.0% | ||
| Q1'26 | $0.23 | $0.21 | -8.7% | ||
| Q4'25 | $0.23 | $0.25 | +8.7% | ||
| Q3'25 | $0.22 | $0.23 | +4.5% | ||
| Q2'25 | $0.22 | $0.20 | -9.1% | ||
| Q1'25 | $0.29 | $0.27 | -6.9% | ||
| Q4'24 | $0.26 | $0.30 | +15.4% | ||
| Q3'24 | $0.30 | $0.31 | +3.3% |
Total return is +4.9% (1Y), lagging the benchmark by -20.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -6.0% | -15.3% | — |
| 1Y | +4.9% | -20.1% | +8.7% |
| 3YCAGR | +6.9% | -12.9% | +26.0% |
| 5YCAGR | +4.7% | -8.3% | +38.3% |
| 10YCAGR | +4.9% | -8.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ladder Capital Corp (LADR) valuation, health, and returns.
Ladder Capital Corp is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +38.5% upside to DCF intrinsic value of $14.13)
Ladder Capital Corp has multiple valuation anchors: DCF Intrinsic Value: $14.13 | Peer Relative Fair Value: $10.68 | Wall Street Analyst Target: $13.00 (implying +27.5% upside). A convergence of these signals offers higher conviction.
Ladder Capital Corp displays fair financial health with a composite quality score of 42/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 4.4%.
Ladder Capital Corp pays a 9.1% dividend yield, covered by a 183% payout ratio with 0 years of growth, supplemented by a 0.9% buyback yield.
Ladder Capital Corp's current growth trajectory is Decelerating. The company achieved -23.3% 1Y revenue growth and -40.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -10.3%.
Wall Street consensus is Buy based on 17 analysts, beating EPS expectations in 67% of recent quarters with a -2-quarter streak. The consensus price target represents a +27.5% change from current levels.
Investment risks for Ladder Capital Corp include: -18.1% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.51x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.