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Two Harbors Investment (NYSE:TWO) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Two Harbors Investment Forward PE Ratio Related Terms
Two Harbors Investment Forward PE Ratio Historical Data
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The historical data trend for Two Harbors Investment's Forward PE 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 Forward PE Ratio Chart
Two Harbors Investment Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
8.31
8.90
8.83
6.88
9.27
6.35
6.29
7.64
16.89
6.52
7.60
Two Harbors Investment Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
8.31
8.56
9.53
8.70
8.90
9.63
9.72
9.83
8.83
8.18
8.23
7.79
6.88
7.14
6.93
7.85
9.27
3.28
4.90
5.31
6.35
7.29
9.47
7.70
6.29
6.73
6.69
3.97
7.64
5.96
5.83
10.16
16.89
10.35
12.48
7.43
6.52
7.89
7.39
6.87
7.60
9.59
11.17
TWO vs LADR, ORC, CIM: Forward PE Ratio Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's Forward PE Ratio falls into.
Two Harbors Investment Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Two Harbors Investment (TWO) has a Forward PE Ratio of 11.03 as of Aug. 13, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Two Harbors Investment and its competitors. According to the industry distribution chart, Two Harbors Investment ranks #106 out of 457 companies in the REITs industry, placing it in the top 23.2%.
Is Two Harbors Investment's Forward PE Ratio too high?
Two Harbors Investment's current Forward PE Ratio is 11.03. The REITs industry median Forward PE Ratio is 16.44. Two Harbors Investment's value of 11.03 is 32.9% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #106 out of 457 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Two Harbors Investment has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's Forward PE Ratio compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #106 out of 457 companies for Forward PE Ratio. This places Two Harbors Investment in the top 23% of its industry — outperforming the majority of peers. The industry median Forward PE Ratio is 16.44. Two Harbors Investment's value of 11.03 is 32.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a REITs company?
The median Forward PE Ratio among REITs companies is 16.44, based on 457 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current Forward PE Ratio of 11.03 is 32.9% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median Forward PE Ratio is 16.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current Forward PE Ratio is 11.03. 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 (TWO) is currently considered Possible Value Trap. The stock's GF Value™ is $19.23, compared to a current price of $12.03 — trading 37.5% below its estimated fair value. The current Forward PE Ratio is 11.03 and 32.9% below the REITs industry median of 16.44. Two Harbors Investment's overall GF Score™ is 49/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Two Harbors Investment (TWO), the current Forward PE Ratio is 11.03 as of Aug. 13, 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 (TWO) Overvalued in 2026?
Based on GuruFocus' analysis, Two Harbors Investment stock appears to be undervalued.
The current stock price of $12.03 is trading 37.5% below its estimated GF Value™ of $19.23.
GuruFocus considers Two Harbors Investment to be Possible Value Trap.
Key valuation signals for TWO:
Forward PE Ratio: 11.03
GF Value™: $19.23 vs. price of $12.03 (37.5% below fair value)
Industry Position: 32.9% below the REITs median (#106 of 457)
No single metric tells the full story. See the TWO 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.
49GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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