What Is Redwood Trust, Inc. (RWT) Worth in 2026?
According to the CirclFi Deep Alpha Valuation Engine, Redwood Trust, Inc.'s intrinsic value is estimated at a composite fair value of $7.80. While the stock appears modestly undervalued at $5.07 (implied upside of +53.9%), our analysis suggests a thinner margin of safety across 7 of 11 bullish models. Notably, Markov DDM sees the most upside at +162.6% (fair value: $13.30), while Bayesian DCF is the most conservative at -63.6% ($1.84). The spread between these extremes — +226.3% — reveals how different analytical frameworks can reach starkly different conclusions.
What Do the Models Say About RWT?
11 of 13 models are currently active for RWT. Of these, 7 models suggest upside while 4 models suggest overvaluation. The Bayesian DCF estimates RWT's intrinsic value at $1.84, implying -63.6% downside from the current price. See which stocks rank higher →
How Does RWT Rank in Real Estate Investment Trusts?
Among 182 Real Estate Investment Trusts stocks, RWT ranks #148 by Quality of Company score. CirclFi's QOC score of 5.7/10 evaluates 32 fundamental signals. A score of 5.7 reflects mixed fundamentals.
See all Most Undervalued Real Estate Investment Trusts Stocks →
Within the Real Estate Investment Trusts space, Redwood Trust, Inc. competes in an environment where occupancy rate often separates market leaders from laggards. Understanding these industry-specific dynamics is essential context for interpreting our model outputs.
Is RWT a Value Trap?
CirclFi's Value Trap algorithm assigns RWT a score of 30/100 (LOW). This indicates low risk. The financial profile does not exhibit typical value trap warning signs. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →
Multi-Model Methodology
11 of 13 models are active for Redwood Trust, Inc.. Broad coverage provides high confidence. Each model applies a fundamentally different valuation philosophy. See the complete methodology →
According to the CirclFi 32-factor quality framework, Redwood Trust, Inc.'s fundamental quality profile registers 5.7/10. This respectable score captures the company's profitability depth, growth consistency, balance sheet resilience, and shareholder return track record.
The gap between the most bullish and bearish model spans +226.3% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →
Data Sources & Confidence
Every RWT valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →
Across RWT's 11 active models, average confidence is 26%. Lower confidence may reflect limited history or high volatility.
CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →
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