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Two Harbors Investment PE Ratio

: 4.22 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2021-10-16), Two Harbors Investment's share price is $6.66. Two Harbors Investment's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $1.58. Therefore, Two Harbors Investment's PE Ratio for today is 4.22.


The historical rank and industry rank for Two Harbors Investment's PE Ratio or its related term are showing as below:

NYSE:TWO' s PE Ratio Range Over the Past 10 Years
Min: 2.92   Med: 6.78   Max: 104.57
Current: 4.19

2.92
104.57

During the past 13 years, the highest PE Ratio of Two Harbors Investment was 104.57. The lowest was 2.92. And the median was 6.78.


NYSE:TWO's PE Ratio is ranked lower than
99.99% of the 164 Companies
in the REITs industry.

( Industry Median: 21.25 vs. NYSE:TWO: 4.19 )

Two Harbors Investment's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $-0.48. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $1.58.

As of today (2021-10-16), Two Harbors Investment's share price is $6.66. Two Harbors Investment's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $1.58. Therefore, Two Harbors Investment's PE Ratio without NRI for today is 4.22.

During the past 13 years, Two Harbors Investment's highest PE Ratio without NRI was 104.57. The lowest was 2.92. And the median was 6.78.

Two Harbors Investment's EPS without NRI for the three months ended in Jun. 2021 was $-0.48. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $1.58.

During the past 13 years, Two Harbors Investment's highest 3-Year average EPS without NRI Growth Rate was 198.80% per year. The lowest was -29.10% per year. And the median was 2.70% per year.

Two Harbors Investment's EPS (Basic) for the three months ended in Jun. 2021 was $-0.48. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $1.70.


Two Harbors Investment PE Ratio Historical Data

The historical data trend for Two Harbors Investment's 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.

* Premium members only.

Two Harbors Investment Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.03 8.98 At Loss 15.72 At Loss

Two Harbors Investment Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only At Loss At Loss At Loss 5.39 4.78

Competitive Comparison

For the REIT - Mortgage subindustry, Two Harbors Investment's PE Ratio, along with its competitors' market caps and 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 PE Ratio Distribution

For the REITs industry and Real Estate sector, Two Harbors Investment's PE Ratio distribution charts can be found below:

* The bar in red indicates where Two Harbors Investment's PE Ratio falls into.



Two Harbors Investment PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Two Harbors Investment's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=6.66/1.580
=4.22

Two Harbors Investment's Share Price of today is $6.66.
Two Harbors Investment's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.58.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Two Harbors Investment  (NYSE:TWO) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items 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 PE Ratio Related Terms

Thank you for viewing the detailed overview of Two Harbors Investment's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Two Harbors Investment Business Description

Two Harbors Investment logo
Industry
Real Estate » REITs NAICS : 531110 SIC : 6798
Address
601 Carlson Parkway, Suite 1400, Minnetonka, MN, USA, 55305
Two Harbors Investment Corp is a real estate investment trust primarily focused on investing in, financing, and managing residential mortgage-backed securities, or RMBS; residential mortgage loans; mortgage servicing rights; and commercial real estate. The majority of the company's investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. Two Harbors derives nearly all of its revenue in the form of interest income collected from its investments. Most of this income is generated by available-for-sale securities, while residential mortgage loans held for investment in securitization trusts also contribute a sizable amount.
Executives
Bender James J director 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Kasnet Stephen G director ONE UNIVERSITY LANE MANCHASTER MA 01944
Woodhouse Hope B director 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Hammond Karen director 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Stern James A director C/O OHA - 1114 AVENUE OF THE AMERICAS 27TH FLOOR NEW YORK NY 10036
Sanders William Reid director C/O TWO HARBORS INVESTMENT CORP. 601 CARLSON PARKWAY, SUITE 1400 MINNETONKA MN 55305
Abraham Spencer director 600 14TH STREET, NW SUITE 500 WASHINGTON DC 20005
Greenberg William Ross officer: Co-Chief Investment Officer 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Koeppen Matthew officer: Co-Chief Investment Officer 575 LEXINGTON AVENUE SUITE 2930 NEW YORK NY 10022
Sandberg Rebecca B officer: General Counsel and Secretary 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Riskey Mary Kathryn officer: Chief Financial Officer 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Siering Thomas director, officer: CEO & President TWO HARBORS INVESTMENT CORP. 601 CARLSON PARKWAY, SUITE 1400 MINNETONKA MN 55305
Farrell Brad officer: CFO and Treasurer 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305
Roth William director, officer: Chief Investment Officer TWO HARBORS INVESTMENT CORP. 601 CARLSON PARKWAY, SUITE 1400 MINNETONKA MN 55305
Pollina Lisa A director 601 CARLSON PARKWAY SUITE 1400 MINNETONKA MN 55305

Two Harbors Investment Headlines

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