TWO - NYSE

Two Harbors Investment Corp.

Two Harbors Investment Corp.

TWOยทNYSE

$12.36

-0.40%
Real EstateREIT - Mortgage

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions. The company qualifies as a REIT for federal income tax purposes. As a REIT, the company must distribute at least 90% of annual taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in Minnetonka, Minnesota.

StatementsValue Model

At a Glance

Live Snapshot
Market Cap$1.30B
EPS-4.3600
P/E Ratio-2.83
Earnings Date07/27/2026
Two Harbors Investment Corp.

Two Harbors Investment Corp. Fair Value Envelope

TWO ยท NYSE

Our analysis suggests that TWO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $12.36, this represents a potential HIDDEN relative to our calculated worth for Two Harbors Investment Corp..

HIDDEN
Intrinsic Value
Current Price: $12.36

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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$
%
$
$

Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$1.2B
+ Cash & Equivalents$842.3M
Firm Value$2.0B
- Debt$8.6B
Equity Value-$6.5B
/ Shares Outstanding104,155,818B
DCF Value-$63
OVERVALUED BY 607%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$91.0M
$93.1M
$95.3M
$97.6M
$99.8M
$102.2M
$104.6M
$107.0M
$109.5M
$112.1M
Maintenance CapEx
-$21.3M
-$21.8M
-$22.3M
-$22.8M
-$23.4M
-$23.9M
-$24.5M
-$25.0M
-$25.6M
-$26.2M
Owner Earnings
$69.7M
$71.4M
$73.0M
$74.7M
$76.5M
$78.3M
$80.1M
$82.0M
$83.9M
$85.9M
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$64.6M
$61.2M
$58.0M
$54.9M
$52.1M
$49.3M
$46.7M
$44.3M
$42.0M
$39.8M
Terminal Value represents 56.9% of Enterprise Value

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