Ellington Credit Co (EARN) is now in the Undervalued zone, suggesting that its current forward PE ratio of 5.90 is considered Undervalued compared with the five-year average of 7.21. The fair price of Ellington Credit Co (EARN) is between 9.86 to 12.05 according to relative valuation method. Compared to the current price of 4.95 USD , Ellington Credit Co By Undervalued By 49.79%.

Relative Value

Fair Zone

9.86-12.05

Current Price：4.95

49.79%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Ellington Credit Co (EARN) has a current Price-to-Book (P/B) ratio of 0.87. Compared to its 3-year average P/B ratio of 0.90, the current P/B ratio is approximately -3.52% higher. Relative to its 5-year average P/B ratio of 0.90, the current P/B ratio is about -3.09% higher. Ellington Credit Co (EARN) has a Forward Free Cash Flow (FCF) yield of approximately 9.81%. Compared to its 3-year average FCF yield of 2.20%, the current FCF yield is approximately 345.47% lower. Relative to its 5-year average FCF yield of 10.55%, the current FCF yield is about -7.06% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for EARN competitors is 30.49, providing a benchmark for relative valuation. Ellington Credit Co Corp (EARN.N) exhibits a P/S ratio of 4.13, which is -86.46% above the industry average. Given its robust revenue growth of -338.16%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of EARN increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of EARN in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is EARN currently overvalued or undervalued?

What is Ellington Credit Co (EARN) fair value?

EARN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Ellington Credit Co (EARN) is between 9.86 to 12.05 according to relative valuation method.

How does EARN's valuation metrics compare to the industry average?

The average P/S ratio for EARN's competitors is 30.49, providing a benchmark for relative valuation. Ellington Credit Co Corp (EARN) exhibits a P/S ratio of 4.13, which is -86.46% above the industry average. Given its robust revenue growth of -338.16%, this premium appears unsustainable.

What is the current P/B ratio for Ellington Credit Co (EARN) as of Mar 03 2026?

As of Mar 03 2026, Ellington Credit Co (EARN) has a P/B ratio of 0.87. This indicates that the market values EARN at 0.87 times its book value.

What is the current FCF Yield for Ellington Credit Co (EARN) as of Mar 03 2026?

As of Mar 03 2026, Ellington Credit Co (EARN) has a FCF Yield of 9.81%. This means that for every dollar of Ellington Credit Co's market capitalization, the company generates 9.81 cents in free cash flow.

What is the current Forward P/E ratio for Ellington Credit Co (EARN) as of Mar 03 2026?

As of Mar 03 2026, Ellington Credit Co (EARN) has a Forward P/E ratio of 5.90. This means the market is willing to pay $5.90 for every dollar of Ellington Credit Co's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ellington Credit Co (EARN) as of Mar 03 2026?

As of Mar 03 2026, Ellington Credit Co (EARN) has a Forward P/S ratio of 4.13. This means the market is valuing EARN at $4.13 for every dollar of expected revenue over the next 12 months.

EARN Valuation