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Redwood Trust (Redwood Trust) Cyclically Adjusted Price-to-FCF : (As of Apr. 28, 2024)


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What is Redwood Trust Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Redwood Trust Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Redwood Trust'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.

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Redwood Trust Cyclically Adjusted Price-to-FCF Chart

Redwood Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Redwood Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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Competitive Comparison of Redwood Trust's Cyclically Adjusted Price-to-FCF

For the REIT - Mortgage subindustry, Redwood Trust'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.


Redwood Trust's Cyclically Adjusted Price-to-FCF Distribution in the REITs Industry

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

* The bar in red indicates where Redwood Trust's Cyclically Adjusted Price-to-FCF falls into.



Redwood Trust 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.

Redwood Trust's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Redwood Trust's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-9.414/129.4194*129.4194
=-9.414

Current CPI (Dec. 2023) = 129.4194.

Redwood Trust Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -4.740 99.695 -6.153
201406 -4.547 100.560 -5.852
201409 -8.105 100.428 -10.445
201412 -3.073 99.070 -4.014
201503 -1.451 99.621 -1.885
201506 -1.875 100.684 -2.410
201509 -9.062 100.392 -11.682
201512 -2.551 99.792 -3.308
201603 1.304 100.470 1.680
201606 -4.859 101.688 -6.184
201609 -4.058 101.861 -5.156
201612 2.155 101.863 2.738
201703 2.589 102.862 3.257
201706 -5.339 103.349 -6.686
201709 -3.526 104.136 -4.382
201712 -9.882 104.011 -12.296
201803 -1.324 105.290 -1.627
201806 -5.288 106.317 -6.437
201809 -6.005 106.507 -7.297
201812 -2.131 105.998 -2.602
201903 -1.635 107.251 -1.973
201906 -2.693 108.070 -3.225
201909 -4.709 108.329 -5.626
201912 0.233 108.420 0.278
202003 -2.116 108.902 -2.515
202006 2.019 108.767 2.402
202009 -1.631 109.815 -1.922
202012 -2.894 109.897 -3.408
202103 -6.850 111.754 -7.933
202106 -11.893 114.631 -13.427
202109 -7.953 115.734 -8.893
202112 -13.335 117.630 -14.672
202203 -2.076 121.301 -2.215
202206 -1.664 125.017 -1.723
202209 3.113 125.227 3.217
202212 -0.086 125.222 -0.089
202303 0.894 127.348 0.909
202306 -0.685 128.729 -0.689
202309 -7.717 129.860 -7.691
202312 -9.414 129.419 -9.414

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.


Redwood Trust  (NYSE:RWT) 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.


Redwood Trust Cyclically Adjusted Price-to-FCF Related Terms

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


Redwood Trust (Redwood Trust) Business Description

Industry
Traded in Other Exchanges
Address
One Belvedere Place, Suite 300, Mill Valley, CA, USA, 94941
Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Business Purpose Mortgage Banking segment consists of a platform that originates and acquires business purpose lending (BPL) loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.
Executives
Doneene K Damon director 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Fred Matera officer: Chief Investment Officer 1 BELVEDERE PLACE, STE. 300, MILL VALLEY CA 94941
Andrew P Stone officer: General Counsel 1 BELVEDERE PLACE, STE. 300, MILL VALLEY CA 94941
Cochrane Collin Lee officer: Controller, Managing Director C/O REDWOOD TRUST, INC, 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Dashiell I Robinson director, officer: President 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Horvath D Debora director 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Sasha G. Macomber officer: Chief Human Resource Officer 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Brooke Carillo officer: Chief Financial Officer C/O REDWOOD TRUST, INC., 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Greg H Kubicek director 2601 NE 163RD COURT, VANCOUVER WA 98684
Armando Falcon director 1 BELVEDERE PLACE,SUITE 300, C/O REDWOOD TRUST, INC, MILL VALLEY CA 94941
Faith A Schwartz director 1 BELVEDERE PLCAE, SUITE 300, C/O REDWOOD TRUST, INC., MILL VALLEY CA 94941
Georganne Proctor director 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
George W Madison director 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Mariann H Byerwalter director C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY 920/2, SAN MATEO CA 94403
Jeffrey T Pero director ONE BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941