Real Estate · REIT - Mortgage · NYSE · United States
$12.18+1.08%
Market cap $1.3BNext earnings 2026-10-26Updated Oct 20, 2026
Our verdict
Trades 311% above our fair value
Price
$12.18
Model fair valueConfidence: low
about $2.96
Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
Not used by alerts or posts.
Valued as a REIT (property company): Dividend discount.
ACCE opinionTwo Harbors Investment Corp (TWO)
Fair value (2 models)
Not available
ACCE price target
$11.50
Rating
Not rated
Horizon
12 months
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Price used: $12.18 at the close on 1 Sept 2026, 22:00 CEST.
Models: Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
55
out of 100
Analysts
50% buy
10 covering
P/E
0.0x
forward 10.8x
1-year return
+21.8%
Dividend yield
11.29%
Two Harbors Investment Corp in four questions
Plain answers, details below
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Overview
ACCE thesis
Two Harbors is a mortgage REIT that invests in agency residential mortgage-backed securities and manages mortgage servicing rights, so its earnings depend on the spread between what it earns on those assets and what it pays to finance them. The 620% revenue growth figure is a poor guide to the business, since mortgage REIT revenue swings with interest income and fair-value marks, and the trailing ROE of -1.2% shows the spread has not yet produced a profit for shareholders. The case for a closer look rests on the forward P/E of 10.8, which implies the market expects earnings to recover, and on a 48.1% operating margin that suggests the portfolio is covering its funding costs. The stock carries a 55/100 score with no index membership, so the upside depends on whether the spread stabilises as rates ease. Whether that recovery shows up in reported book value and earnings is the first thing to verify.