Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Rithm Property Trust Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -46.8% to -10.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 1426, DPO 230, DIO 60). At a 6.4% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $25.75 per share, suggesting RPT is undervalued by 70.3% at the current price of $15.12.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 3 | 3 | 3 | 3 | 2 | 3 |
| (−) Net Interest | 16 | 20 | 18 | 16 | 14 | 15 |
| (+) D&A | 12 | 7 | 3 | 5 | 6 | 6 |
| EBITDA | 30 | 30 | 24 | 23 | 23 | 23 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | 0 |
| (−) CapEx | 7 | 9 | 8 | 7 | 6 | 7 |
| (−) ΔWC | -255 | 24 | -13 | -12 | -11 | -11 |
| Free Cash Flow (FCFF) | 278 | -2 | 29 | 28 | 27 | 28 |
| Terminal Value | 712 | |||||
| WACC / Discount Rate | 6.4% | |||||
| Long-term Growth Rate | 2.5% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 270 | -2 | 25 | 23 | 21 | 522 |
| Enterprise Value | 857 | |||||
| Projection Period | 336 | 39.1% | ||||
| Terminal Value | 522 | 60.9% | ||||
| (−) Current Net Debt | 663 | |||||
| Equity Value | 195 | |||||
| (/) Outstanding Shares | 8 | |||||
| Fair Price | $25.75 | |||||
| WACC \ Terminal Growth Rate | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 4.4% | $60 | $81 | $113 | $168 | $285 |
| 5.4% | $30 | $40 | $54 | $75 | $105 |
| 6.4% | $12 | $18 | $26 | $36 | $49 |
| 7.4% | $0 | $4 | $9 | $15 | $22 |
| 8.4% | $0 | $0 | $0 | $1 | $6 |
Current price: $15.12. Green = undervalued, Red = overvalued.
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Rithm Property Trust Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -46.8% to -10.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 1426, DPO 230, DIO 60). At a 6.4% WACC with mid-year discounting, the terminal value (50% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 19.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $1.70 per share, suggesting RPT is overvalued by 88.7% at the current price of $15.12.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 3 | 3 | 3 | 3 | 2 | 3 |
| (−) Net Interest | 16 | 20 | 18 | 16 | 14 | 15 |
| (+) D&A | 12 | 7 | 3 | 5 | 6 | 6 |
| EBITDA | 30 | 30 | 24 | 23 | 23 | 23 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 7 | 9 | 8 | 7 | 6 | — |
| (−) ΔWC | -255 | 24 | -13 | -12 | -11 | — |
| Free Cash Flow (FCF) | 278 | -2 | 29 | 28 | 27 | — |
| Peers' EBITDA Multiple | 19.8x | |||||
| Terminal Value | 464 | |||||
| WACC / Discount Rate | 6.41% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 270 | -2 | 25 | 23 | 21 | 340 |
| Enterprise Value | 675 | |||||
| Projection Period | 336 | 49.7% | ||||
| Terminal Value | 340 | 50.3% | ||||
| (−) Current Net Debt | 663 | |||||
| Equity Value | 13 | |||||
| (÷) Outstanding Shares | 8M | |||||
| Fair Price | $2 | -88.8% | ||||
| WACC \ EV/EBITDA Exit Multiple | 15.8x | 17.8x | 19.8x | 21.8x | 23.8x |
|---|---|---|---|---|---|
| 4.4% | $0 | $2 | $7 | $12 | $17 |
| 5.4% | $0 | $0 | $4 | $9 | $14 |
| 6.4% | $0 | $0 | $2 | $6 | $11 |
| 7.4% | $0 | $0 | $0 | $4 | $8 |
| 8.4% | $0 | $0 | $0 | $1 | $5 |
Current price: $15.12. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), Rithm Property Trust Inc. (RPT) has a fair value of $1.79 based on 2 comparable companies in the REIT - Mortgage industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Rithm Property Trust Inc.RPT | 114 | — | — |
| Logistic Properties of the Americas | 108 | 10.3x | — |
| Sunrise Realty Trust, Inc. | 104 | 8.1x | 6.4x |
| Industry Median | 9.2x | 6.4x | |
| (*) Profit after tax | 1 | ||
| Equity Value | 14 | ||
| (/) Outstanding shares | 8 | ||
| Fair Price | $2 | ||
Using the Two-Stage Dividend Discount Model with a Cost of Equity of 16.8% and projected dividend growth of 0.0%, the fair value is $9.51 per share. The DDM range is $8.36 – $11.93 based on sensitivity analysis across Cost of Equity and growth rate assumptions.
| Year | DPS | Payout Ratio | YoY Growth |
|---|---|---|---|
| 2025 | $1.46 | 749.0% | -14.8% |
| 2024 | $1.71 | — | -52.2% |
| 2022 | $3.58 | — | +69.4% |
| 2021 | $2.11 | 69.2% | — |
| Year | Projected DPS | Growth | Discount Factor | Present Value |
|---|---|---|---|---|
| 2026 | $1.46 | 0.0% | 0.8564 | $1.25 |
| 2027 | $1.46 | 0.0% | 0.7335 | $1.07 |
| 2028 | $1.46 | 0.0% | 0.6281 | $0.91 |
| 2029 | $1.46 | 0.0% | 0.5380 | $0.78 |
| 2030 | $1.46 | 0.0% | 0.4607 | $0.67 |
| Terminal Value | $1.49 DPS | 2.5% | $4.82 |
Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.
| Ke \ Growth | 0.0% | 0.0% | 0.0% | 1.0% | 2.0% |
|---|---|---|---|---|---|
| 14.8% | $11 | $11 | $11 | $11 | $12 |
| 15.8% | $10 | $10 | $10 | $11 | $11 |
| 16.8% | $10 | $10 | $10 | $10 | $10 |
| 17.8% | $9 | $9 | $9 | $9 | $10 |
| 18.8% | $8 | $8 | $8 | $9 | $9 |
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.