Using the industry peer median EV/Revenue multiple (trailing + forward), KKR Real Estate Finance Trust Inc. (KREF) has a fair value of $4.51 based on 8 comparable companies in the REIT - Mortgage industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| KKR Real Estate Finance Trust Inc.KREF | 442 | 11.0x | 29.0x |
| Saul Centers, Inc. | 862 | 8.4x | 8.5x |
| Adamas Trust, Inc. | 793 | 14.4x | 60.8x |
| CTO Realty Growth, Inc. | 685 | 8.7x | 10.6x |
| TPG RE Finance Trust, Inc. | 657 | 11.6x | 24.5x |
| Invesco Mortgage Capital Inc. | 591 | 18.1x | 30.2x |
| Ready Capital Corporation | 357 | 12.0x | 26.4x |
| Claros Mortgage Trust, Inc. | 339 | 7.7x | 13.2x |
| NexPoint Real Estate Finance, Inc. | 299 | 37.5x | 142.8x |
| Industry Median | 11.8x | 25.5x | |
| (*) Revenue | 458 | 174 | |
| = Enterprise Value | 5,394 | 4,426 | |
| (-) Net Debt | 4,609 | 4,609 | |
| Equity Value | 785 | -183 | |
| (/) Outstanding shares | 67 | 67 | |
| Fair Price | $12 | $-3 | |
Using the Earnings Power Value framework with a WACC of 6.7% and normalized earnings of $370.4M, the company has a fair value of $13.60 per share. The EPV range is $0.00 – $37.36 based on WACC sensitivity (5.2% – 8.2%).
| Low | Selected | High | |
|---|---|---|---|
| Normalized Earnings | 370 | 370 | 370 |
| (/) WACC | 8.2% | 6.7% | 5.2% |
| Enterprise Value | 4,510 | 5,517 | 7,105 |
| (-) Net debt | 4,609 | 4,609 | 4,609 |
| Equity Value | -99 | 908 | 2,496 |
| (/) Outstanding shares | 67 | 67 | 67 |
| Fair Price | $0.00 | $13.60 | $37.36 |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.