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Two Harbors InvestmentFRA:2H2 51 EV-to-OCF is 16.89 as of Aug. 20, 2026, which is 140% above its 10-year median of 7.03. GuruFocus rates FRA:2H2 with a GF Score™ of 51/100 and a GF Value™ of €16.70 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 923 REITs companies, Two Harbors Investment ranks better than 52.87% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Two Harbors Investment's Enterprise Value is €1,899.1 Mil.
Two Harbors Investment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €112.4 Mil. Therefore, Two Harbors Investment's EV-to-OCF for today is 16.89.
The historical rank and industry rank for Two Harbors Investment's EV-to-OCF or its related term are showing as below:
FRA:2H2'
s EV-to-OCF Range Over the Past 10 Years
Min: -47.6 Med: 7.03 Max: 74.23
Current: 17.29
During the past 13 years, the highest EV-to-OCF of Two Harbors Investment was 74.23. The lowest was -47.60. And the median was 7.03.
FRA:2H2's EV-to-OCF is ranked better than 52.87% of 923
companies
in the REITs industry
Industry Median: 18.14
vs FRA:2H2: 17.29
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Two Harbors Investment (FRA:2H2) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Two Harbors Investment's PE Ratio (TTM) for today is calculated as:
Two Harbors Investment's share price for today is €10.47.
Two Harbors Investment's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €-0.621.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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.
For the REIT - Mortgage subindustry, Two Harbors Investment's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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 EV-to-OCF vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's EV-to-OCF falls into.
Two Harbors Investment's current Enterprise Value is €1,899.1 Mil.
Two Harbors Investment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €112.4 Mil.
* 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 (FRA:2H2) has a EV-to-OCF of 16.89 as of Aug. 20, 2026. This is 140% above median its historical median of 7.03. According to the industry distribution chart, Two Harbors Investment ranks #435 out of 923 companies in the REITs industry, placing it in the top 47.1%.
Is Two Harbors Investment's EV-to-OCF too high?
Two Harbors Investment's current EV-to-OCF of 16.89 is 140% above median its 10-year median of 7.03. The REITs industry median EV-to-OCF is 18.14. Two Harbors Investment's value of 16.89 is 6.9% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #435 out of 923 companies in the REITs industry, which is above the industry midpoint. Overall, Two Harbors Investment has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's EV-to-OCF compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #435 out of 923 companies for EV-to-OCF. This puts Two Harbors Investment in the upper half of its industry. The industry median EV-to-OCF is 18.14. Two Harbors Investment's value of 16.89 is 6.9% below this benchmark. While the company's 10-year median is 7.03 vs. the industry median of 18.14, 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 EV-to-OCF for a REITs company?
The median EV-to-OCF among REITs companies is 18.14, based on 923 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current EV-to-OCF of 16.89 is 6.9% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the REITs industry, the median EV-to-OCF is 18.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current EV-to-OCF is 16.89, which is 140% above median its own 10-year median of 7.03. 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 €16.70, compared to a current price of €10.47 — trading 37.3% below its estimated fair value. The current EV-to-OCF is 16.89, which is 140% above median its 10-year median of 7.03 and 6.9% below the REITs industry median of 18.14. Two Harbors Investment's overall GF Score™ is 51/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current EV-to-OCF is 16.89 as of Aug. 20, 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 37.3% below its estimated GF Value™ of €16.70.
GuruFocus considers Two Harbors Investment to be Possible Value Trap.
Key valuation signals for FRA:2H2:
EV-to-OCF: 16.89 (140% above median its 10-year median of 7.03)
GF Value™: €16.70 vs. price of €10.47 (37.3% below fair value)
Industry Position: 6.9% below the REITs median (#435 of 923)
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.
51GF Score
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