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Capstead Mortgage has the Highest EV/EBITDA Ratio in the Mortgage REITs Industry (CMO, IVR, TWO, ANH, NLY)

By Nick Russo

Below are the three companies in the Mortgage REITs industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Capstead Mortgage ranks highest with a an EV/EBITDA ratio of 66.81. Invesco Mortgage Capital is next with a an EV/EBITDA ratio of 49.74. Two Harbors Investment Corp ranks third highest with a an EV/EBITDA ratio of 48.59.

Anworth Mortgage Asset follows with a an EV/EBITDA ratio of 47.65, and Annaly Capital Management rounds out the top five with a an EV/EBITDA ratio of 35.26.

SmarTrend recommended that subscribers consider buying shares of Anworth Mortgage Asset on February 17th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $4.47. Since that recommendation, shares of Anworth Mortgage Asset have risen 23.9%. We continue to monitor Anworth Mortgage Asset for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio capstead mortgage invesco mortgage capital amex:two two harbors investment corp anworth mortgage asset annaly capital management

Ticker(s): CMO IVR ANH NLY