Ellington Financial Inc (EFC) is undervalued and Starwood Property Trust Inc (STWD) is undervalued.
Against our estimates of intrinsic value, EFC trades at the wider discount: a margin of safety of +63%, against +51% for STWD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.8% values the shares at $34.75; the price of $12.70 is 63% below that value, and 84% of that value comes from beyond year five.
Leak Score 66/100 on 7 of 12 signals
Discounting its cash flows at 6.2% (average of 3 methods) values the shares at $30.72; the price of $15.10 is 51% below that value, and 86% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
| Metric | EFC | STWD |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $12.70 | $15.10 |
| Intrinsic value | $34.75 | $30.72 |
| Margin of safety | +63% | +51% |
| Leak Score | 66/100 (7/12) | 56/100 (2/12) |
| Market cap | $1.6B | $5.6B |
| Revenue growth, 5 years | 32.4% | 10.6% |
| Operating margin | 81.2% | 73.3% |
| Net margin | 31.1% | 10.8% |
| Return on equity | 12.3% | 3.4% |
| Debt to equity | 9.40 | 3.65 |
| P/E | 7.7x | 25.4x |
| Forward P/E | 6.4x | 8.0x |
| P/B | 0.9x | 0.9x |
| Dividend yield | 12.3% | 12.7% |