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Relatively Low EV/EBITDA Ratio Detected in Shares of Arbor Realty Trust in the Mortgage REITs Industry (ABR, CIM, NYMT, RSO, MFA)

By David Diaz

Below are the three companies in the Mortgage REITs industry with the lowest 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.

Arbor Realty Trust ranks lowest with a an EV/EBITDA ratio of 18.12. Following is Chimera Investment with a an EV/EBITDA ratio of 20.57. New York Mortgage Trust ranks third lowest with a an EV/EBITDA ratio of 21.50.

Resource Capital follows with a an EV/EBITDA ratio of 25.09, and MFA Financial rounds out the bottom five with a an EV/EBITDA ratio of 29.09.

SmarTrend recommended that subscribers consider buying shares of Resource Capital on March 7th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $10.92. Since that recommendation, shares of Resource Capital have risen 11.9%. We continue to monitor Resource Capital for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest ev/ebitda ratio arbor realty trust chimera investment new york mortgage trust resource capital mfa financial