EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Redwood Trust's Enterprise Value is $25,554.7 Mil.
Redwood Trust's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $-12,649.6 Mil. Therefore, Redwood Trust's EV-to-FCF for today is -2.02.
The historical rank and industry rank for Redwood Trust's EV-to-FCF or its related term are showing as below:
RWT'
s EV-to-FCF Range Over the Past 10 Years
Min: -87.83 Med: -4.28 Max: 46.3
Current: -2.02
During the past 13 years, the highest EV-to-FCF of Redwood Trust was 46.30. The lowest was -87.83. And the median was -4.28.
RWT's EV-to-FCF is ranked worse than 100% of 738
companies
in the REITs industry
Industry Median: 22.975
vs RWT: -2.02
EV-to-FCF 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.
EV-to-FCF 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.
Redwood Trust's PE Ratio (TTM) for today is calculated as:
Redwood Trust's share price for today is $5.10.
Redwood Trust's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.780.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Redwood Trust EV-to-FCF Related Terms
Redwood Trust EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Redwood Trust's EV-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.
For the REIT - Mortgage subindustry, Redwood Trust's EV-to-FCF, along with its competitors' market caps and EV-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 EV-to-FCF vs REITs Industry
For the REITs industry and Real Estate sector, Redwood Trust's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Redwood Trust's EV-to-FCF falls into.
Redwood Trust's current Enterprise Value is $25,554.7 Mil.
Redwood Trust's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-12,649.6 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.
Redwood Trust (RWT) has a EV-to-FCF of -2.02 as of Jul. 11, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Redwood Trust and its competitors. According to the industry distribution chart, Redwood Trust ranks #999999 out of 738 companies in the REITs industry.
Is Redwood Trust's EV-to-FCF too high?
Redwood Trust's current EV-to-FCF is -2.02. Based on the distribution chart, Redwood Trust ranks #999999 out of 738 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Redwood Trust has a GF Score™ of 42/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Redwood Trust's EV-to-FCF compare to FBRT and TRTX?
According to the REITs industry distribution chart, Redwood Trust ranks #999999 out of 738 companies for EV-to-FCF. This places Redwood Trust in the lower half of its industry. The industry median EV-to-FCF is 22.98. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a REITs company?
The median EV-to-FCF among REITs companies is 22.98, based on 738 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Redwood Trust and its competitors. For the REITs industry, the median EV-to-FCF is 22.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Trust's current EV-to-FCF is -2.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Trust stock overvalued right now?
Based on GuruFocus' analysis, Redwood Trust (RWT) is currently considered Fairly Valued. The stock's GF Value™ is $4.88, compared to a current price of $5.10 — trading 4.5% above its estimated fair value. The current EV-to-FCF is -2.02. Redwood Trust's overall GF Score™ is 42/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Redwood Trust (RWT), the current EV-to-FCF is -2.02 as of Jul. 11, 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 Redwood Trust (RWT) Overvalued in 2026?
Based on GuruFocus' analysis, Redwood Trust stock appears to be overvalued.
The current stock price of $5.10 is trading 4.5% above its estimated GF Value™ of $4.88.
GuruFocus considers Redwood Trust to be Fairly Valued.
Key valuation signals for RWT:
EV-to-FCF: -2.02
GF Value™: $4.88 vs. price of $5.10 (4.5% above fair value)
No single metric tells the full story. See the RWT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Redwood Trust Inc is a specialty finance company focused on several distinct areas of housing credit. The company delivers customized housing credit investments to a diverse mix of investors through securitization platforms, whole-loan distribution activities, and its publicly traded securities. The company has four reportable segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. Maximum revenue is generated from the Sequoia Mortgage Banking segment, comprising a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale to whole loan buyers, securitization through its SEMT private-label securitization program, or transfer into its Redwood Investments portfolio.
42GF Score
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EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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