MODEL VERDICT
Two Harbors Investment Corp. (TWO)
Relative Valuation•Peer multiples, competitive benchmarking & quality-adjusted fair value
The market is pricing Two Harbors Investment Corp. at a 68.83% premium to its peer-implied fair value.
7 curated peers matched by business model, revenue composition, and market position
| Ticker | Company | Market Cap | P/E | EV/EBITDA |
|---|---|---|---|---|
| AGNC | AGNC Investment Corp. | $11.66B | 7.06x | 2.13x |
| NLY | Annaly Capital Management, Inc. | $15.96B | 7.61x | 18.3x |
| DX | Dynex Capital, Inc. | $1.98B | 5.29x | 20.27x |
| MFA | MFA Financial, Inc. | $973M | 5.67x | 17.03x |
| IVR | Invesco Mortgage Capital Inc. | $575M | 5.23x | 19.11x |
| ARR | ARMOUR Residential REIT, Inc. | $2.08B | 5.08x | 20.69x |
| ORC | Orchid Island Capital, Inc. | $1.02B | 5.4x | 22.67x |
2 valuation metrics · peer-median based
| Multiple | Current | Peer Median | vs Peers | Implied Price |
|---|---|---|---|---|
| EV/EBITDAEnterprise value versus operating cash earnings proxy. | 128.8x | 19.11x | Premium +573.92% | $1.83 |
| Dividend YieldCash yield paid to shareholders. | 13.31% | 17.94% | Premium +34.75% | $9.14 |
How the model derives the final fair value from peer baselines and quality metrics
Premium: The stock is trading at a 220.58% premium to its quality-adjusted fair value of $3.84. The market is pricing the stock 68.81% above our model's estimate.
Quality metrics trail the peer group, warranting a discount.
Quality adjustments are capped at ±15% (up to ±20% for financial services) to prevent runaway premiums. Based on trailing twelve months and multi-year CAGR data where available.
How current multiples rank vs 8 years of the stock’s own history
| Multiple | Current | Historical Median | Percentile | Status |
|---|---|---|---|---|
| EV/EBITDA6 years of data | 128.8x | 14.6x | 100th | Above historical norm |
| Dividend Yield8 years of data | 13.31% | 12.93% | 50th | Normal vs history |
Two Harbors Investment Corp. currently trades near the highest valuation levels observed during the last 8 years.
Wall Street target prices — 22 analysts
Model-identified caveats to consider
TWO looks expensive versus peers using AI-curated peers, with relative upside of -68.8%.
Answers to common questions about TWO's relative valuation and our methodology.
Two Harbors Investment Corp.'s fair value of $3.84 is the price at which the stock would trade if valued at the same multiples as its 7-company peer group, adjusted for differences in business quality. At $12.32, the stock trades at a -68.83% premium to fair value. This is a reference point, not a price target.
The 7 peers shown were selected based on business model similarity, revenue composition, and market position. Each peer was matched for comparable operations, not just industry label. Only companies with clean, usable financial data are included.
Two Harbors Investment Corp. has challenges in dividend yield, net debt / ebitda, and a quality score that warrants a 10% discount relative to its peer group. The Quality Adjustment section breaks down each driver.
No. This page provides an automated quantitative comparison of Two Harbors Investment Corp. against its peers. It is not investment advice, a recommendation, or a solicitation. Valuation is only one factor in an investment decision — it does not account for growth catalysts, management quality, regulatory risk, or your personal financial situation.
A 68.83% premium is substantial. Large premiums suggest the market is pricing in significant growth or quality advantages that must be delivered to justify the current price. Review the Risk Factors and Historical Context sections to assess whether the gap is justified.
Valuation data is refreshed weekly based on the latest financial filings, market prices, and analyst estimates. Two Harbors Investment Corp.'s fair value, peer multiples, and quality scores will shift over time as new earnings are reported and stock prices change.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. Fair value estimates are model outputs under stated assumptions and should not be relied upon as the sole basis for any investment decision.