Popular:
Redwood Trust, Inc. (RWT)
Intrinsic Value
DCF Not Suitable for RWT
Market cap ($0.73B) below $1B threshold — DCF not reliable for small-cap/micro-cap stocks.
Alternative Approach:
Use relative valuation (P/E, P/S) vs. peer group.
Redwood Trust, Inc. (RWT) Intrinsic Value
DCF-based fair value calculation with Bear, Base, and Bull scenarios
Frequently Asked Questions
Is RWT stock undervalued or overvalued?
Insufficient data to compute DCF valuation for RWT. This typically occurs with negative FCF, early-stage companies, or financials where standard DCF models require modification.
What is RWT's intrinsic value?
Unable to calculate intrinsic value. DCF requires positive free cash flow and complete financial data. For banks/REITs, we substitute Net Income or FFO respectively.
How is RWT's fair value calculated?
Standard two-stage DCF with 5-year explicit forecast period and Gordon Growth terminal value. WACC estimated from sector averages and company beta. For RWT, insufficient data prevents full calculation—typically requires 3+ years of positive FCF history.