ARR Fair Value
What is the fair value of ARR?
As of 2025-07-10, the Fair Value of ARMOUR Residential REIT Inc (ARR) is -0.1 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 16.88 USD, the upside of ARMOUR Residential REIT Inc is -100.6%.
Is ARR a good investment?
With the market price of 16.88 USD and our fair value calculation, ARMOUR Residential REIT Inc (ARR) is not a good investment. Investing in ARR stocks now will result in a potential loss of 100.6%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 12-2020 | 12-2021 | 12-2022 | 12-2023 | 12-2024 | 5Y Avg | |
| Net income | -215.1 | 15.36 | -229.93 | -67.92 | -14.39 | -102 |
| YoY growth | 13.9% | 107.1% | -1596.6% | 70.5% | 78.8% | -265.3% |
| Market Cap (mil) | 1,380 |
| P/E | - |
| Forward P/E | 311.7x |
| EPS | -0.02 |
| Avg earnings growth rate | -265.3% |
| TTM earnings | -2 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.