GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Two Harbors Investment Corp (STU:2H2) » Definitions » Cyclically Adjusted Price-to-FCF

Two Harbors Investment (STU:2H2) Cyclically Adjusted Price-to-FCF : (As of Jul. 10, 2025)


View and export this data going back to 2015. Start your Free Trial

What is Two Harbors Investment Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Two Harbors Investment Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Two Harbors Investment's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Two Harbors Investment Cyclically Adjusted Price-to-FCF Chart

Two Harbors Investment Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Two Harbors Investment Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Two Harbors Investment's Cyclically Adjusted Price-to-FCF

For the REIT - Mortgage subindustry, Two Harbors Investment's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Two Harbors Investment's Cyclically Adjusted Price-to-FCF Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Two Harbors Investment's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Two Harbors Investment's Cyclically Adjusted Price-to-FCF falls into.


;
;

Two Harbors Investment Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Two Harbors Investment's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, Two Harbors Investment's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=0.982/134.9266*134.9266
=0.982

Current CPI (Mar. 2025) = 134.9266.

Two Harbors Investment Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 -10.401 100.684 -13.938
201509 -12.706 100.392 -17.077
201512 -7.060 99.792 -9.546
201603 -3.765 100.470 -5.056
201606 -3.468 101.688 -4.602
201609 -10.907 101.861 -14.448
201612 17.591 101.863 23.301
201703 2.011 102.862 2.638
201706 -1.701 103.349 -2.221
201709 1.440 104.136 1.866
201712 0.458 104.011 0.594
201803 1.015 105.290 1.301
201806 0.298 106.317 0.378
201809 -0.477 106.507 -0.604
201812 -4.519 105.998 -5.752
201903 -0.623 107.251 -0.784
201906 4.188 108.070 5.229
201909 2.978 108.329 3.709
201912 -0.977 108.420 -1.216
202003 -1.088 108.902 -1.348
202006 0.511 108.767 0.634
202009 1.570 109.815 1.929
202012 -0.996 109.897 -1.223
202103 -2.498 111.754 -3.016
202106 0.211 114.631 0.248
202109 -0.377 115.734 -0.440
202112 -0.697 117.630 -0.799
202203 -5.088 121.301 -5.660
202206 0.207 125.017 0.223
202209 3.240 125.227 3.491
202212 2.022 125.222 2.179
202303 -1.184 127.348 -1.254
202306 -0.596 128.729 -0.625
202309 1.047 129.860 1.088
202312 0.928 129.419 0.967
202403 -0.397 131.776 -0.406
202406 1.254 132.554 1.276
202409 0.382 133.029 0.387
202412 -0.327 133.157 -0.331
202503 0.982 134.927 0.982

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Two Harbors Investment  (STU:2H2) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Two Harbors Investment Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Two Harbors Investment's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Two Harbors Investment Business Description

Industry
Address
1601 Utica Avenue South, Suite 900, St. Louis Park, MN, USA, 55416
Two Harbors Investment Corp is a real estate investment trust focused on investing in, financing, and managing residential mortgage-backed securities, or RMBS; residential mortgage loans; mortgage servicing rights; and commercial real estate. The majority of the company's investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. Two Harbors derives nearly all of its revenue in the form of interest income collected from its investments. The majority of this income is generated by available-for-sale securities, while residential mortgage loans held for investment in securitization trusts also contribute a sizable amount.

Two Harbors Investment Headlines

No Headlines