RC
Ready Capital Corp
Price:  
4.66 
USD
Volume:  
1,463,461
United States | Mortgage Real Estate Investment Trusts (REITs)

RC Fair Value

-683.9 %
Upside

What is the fair value of RC?

As of 2025-07-05, the Fair Value of Ready Capital Corp (RC) is -27.21 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 4.66 USD, the upside of Ready Capital Corp is -683.9%.

Is RC a good investment?

With the market price of 4.66 USD and our fair value calculation, Ready Capital Corp (RC) is not a good investment. Investing in RC stocks now will result in a potential loss of 683.9%.

Note: valuation result may not be accurate due to the company's negative EPS.

4.66 USD
Stock Price
-27.21 USD
Fair Price
FAIR VALUE CALCULATION

RC Fair Value

Peter Lynch's formula is:

RC Fair Value
= Earnings Growth Rate x TTM EPS
RC Fair Value
= 16.5 x -1.65
RC Fair Value
= -27.21

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
12-202012-202112-202212-202312-20245Y Avg
Net income44.9157.7194.3339.45-435.7560
YoY growth-38.5%251.2%23.2%74.7%-228.4%16.5%

RC Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Ladder Capital Corp1,4130.820.1883%
Dynex Capital Inc1,3730.716.4928.8%
Ellington Financial Inc1,2441.639.94203.5%
MFA Financial Inc1,0001.67.81-19.8%
Orchid Island Capital Inc7830.31.6-77.6%
Capstead Mortgage Corp664-1.4-6.79-204.4%
KKR Real Estate Finance Trust Inc6100.57.47-17%
Invesco Mortgage Capital Inc5320.83.82-52.6%
Acres Commercial Realty Corp1343.215.95-12.3%
Lument Finance Trust Inc1150.37.24230.5%

RC Fair Value - Key Data

Market Cap (mil)795
P/E-
Forward P/E-
EPS-1.65
Avg earnings growth rate16.5%
TTM earnings-282

RC Fair Value - Formula's Origin

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.