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Two Harbors InvestmentFRA:2H2 53 Cyclically Adjusted PS Ratio is 4.47 as of Sep. 02, 2026, which is 23% above its 10-year median of 3.63. GuruFocus rates FRA:2H2 with a GF Score™ of 53/100 and a GF Value™ of €16.37 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 540 REITs companies, Two Harbors Investment ranks better than 60.74% on this metric.
The historical rank and industry rank for Two Harbors Investment's Cyclically Adjusted PS Ratio or its related term are showing as below:
FRA:2H2'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.23 Med: 3.63 Max: 6.35
Current: 4.54
During the past years, Two Harbors Investment's highest Cyclically Adjusted PS Ratio was 6.35. The lowest was 1.23. And the median was 3.63.
FRA:2H2's Cyclically Adjusted PS Ratio is ranked better than 60.74% of 540
companies
in the REITs industry
Industry Median: 5.695
vs FRA:2H2: 4.54
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
Two Harbors Investment's adjusted revenue per share data for the three months ended in Jun. 2026 was €0.985. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €2.34 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Two Harbors Investment (FRA:2H2) Cyclically Adjusted PS Ratio Explanation
Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.
Two Harbors Investment Cyclically Adjusted PS Ratio Related Terms
Two Harbors Investment Cyclically Adjusted PS Ratio Historical Data
* Premium members only.
The historical data trend for Two Harbors Investment's Cyclically Adjusted PS Ratio 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.
Two Harbors Investment Cyclically Adjusted PS Ratio Chart
FRA:2H2 vs LADR, ORC, CIM: Cyclically Adjusted PS Ratio Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 Cyclically Adjusted PS Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's Cyclically Adjusted PS Ratio distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's Cyclically Adjusted PS Ratio falls into.
Two Harbors Investment Cyclically Adjusted PS Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS 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 PS Ratio.
* 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.
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.
What does a Cyclically Adjusted PS Ratio of 4.47 mean?
Two Harbors Investment (FRA:2H2) has a Cyclically Adjusted PS Ratio of 4.47 as of Sep. 02, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Two Harbors Investment and its competitors. This is 23% above median its historical median of 3.63. Over the past decade, Two Harbors Investment's Cyclically Adjusted PS Ratio has ranged from 1.23 to 6.35. According to the industry distribution chart, Two Harbors Investment ranks #212 out of 540 companies in the REITs industry, placing it in the top 39.3%.
Is Two Harbors Investment's Cyclically Adjusted PS Ratio too high?
Two Harbors Investment's current Cyclically Adjusted PS Ratio of 4.47 is 23% above median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 6.35. The REITs industry median Cyclically Adjusted PS Ratio is 5.70. Two Harbors Investment's value of 4.47 is 21.5% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #212 out of 540 companies in the REITs industry, which is above the industry midpoint. Overall, Two Harbors Investment has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's Cyclically Adjusted PS Ratio compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #212 out of 540 companies for Cyclically Adjusted PS Ratio. This puts Two Harbors Investment in the upper half of its industry. The industry median Cyclically Adjusted PS Ratio is 5.70. Two Harbors Investment's value of 4.47 is 21.5% below this benchmark. Historically, Two Harbors Investment's own Cyclically Adjusted PS Ratio has ranged from 1.23 to 6.35 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 5.70, Two Harbors Investment has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PS Ratio for a REITs company?
The median Cyclically Adjusted PS Ratio among REITs companies is 5.70, based on 540 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current Cyclically Adjusted PS Ratio of 4.47 is 21.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median Cyclically Adjusted PS Ratio is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current Cyclically Adjusted PS Ratio is 4.47, which is 23% above median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two Harbors Investment stock overvalued right now?
Based on GuruFocus' analysis, Two Harbors Investment (FRA:2H2) is currently considered Possible Value Trap. The stock's GF Value™ is €16.37, compared to a current price of €10.47 — trading 36% below its estimated fair value. The current Cyclically Adjusted PS Ratio is 4.47, which is 23% above median its 10-year median of 3.63 and 21.5% below the REITs industry median of 5.70. Two Harbors Investment's overall GF Score™ is 53/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current Cyclically Adjusted PS Ratio is 4.47 as of Sep. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Two Harbors Investment (FRA:2H2) Overvalued in 2026?
Based on GuruFocus' analysis, Two Harbors Investment stock appears to be undervalued.
The current stock price of €10.47 is trading 36% below its estimated GF Value™ of €16.37.
GuruFocus considers Two Harbors Investment to be Possible Value Trap.
Key valuation signals for FRA:2H2:
Cyclically Adjusted PS Ratio: 4.47 (23% above median its 10-year median of 3.63)
GF Value™: €16.37 vs. price of €10.47 (36% below fair value)
Industry Position: 21.5% below the REITs median (#212 of 540)
No single metric tells the full story. See the FRA:2H2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two Harbors Investment Corp is a real estate investment trust focused on investing in, financing, and managing residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights, and commercial real estate. The majority of its investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. The company derives revenues mainly from its MSR and Agency RMBS portfolio, including servicing fee income, float income, and interest income, as well as mortgage loan origination activities established to support the MSR portfolio. Its investment portfolio is subject to market risks, mainly interest rate, basis, and prepayment risk. The majority of income is generated by available-for-sale securities.
53GF Score
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