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Redwood Trust, Inc (RWT) Fair Value & Analysis

Real Estate · US · Market cap $624M

Price$4.81
Fair Value$10.27
Upside+113.5%
Quality95/100
Evidence: Medium Range $6.04 – $13.49

Fair value as of: Jun 25, 2026

Analysis

Redwood Trust, Inc (RWT) currently trades at $4.81, while our model-based Fair Value estimate is $10.27 — implying the stock looks roughly 113.5% undervalued today. We read business quality at 95/100 (high quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium) — always confirm before acting.

About the company

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. It operates through four segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. The CoreVest Mortgage Banking segment operates a platform that originates residential investor loans for subsequent securitization, sale, or transfer into the Redwood Investments portfolio or into joint ventures. This segment also includes various derivative financial instruments that we utilize to manage certain risks associated with our inventory of loans held for sale. The Redwood Investments segment primarily targets investments with sensitivity to housing credit risk, sourced through our operating platforms where con…

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Frequently asked questions

Is Redwood Trust, Inc (RWT) undervalued?
As of Jun 25, 2026, our model estimates a fair value of $10.27 versus a price of $4.81 — about +114% (undervalued). Model-based estimate, not financial advice.
What is the fair value of RWT?
Our 21-model fair value for Redwood Trust, Inc is $10.27 (as of Jun 25, 2026), built from audited fundamentals. The current price is $4.81.
What is the quality score of RWT?
Redwood Trust, Inc has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.