Ladder Capital (LADR) Could Be 29% Below Fair Value On Jacksonville Sale News

Ladder Capital (LADR) drew investor attention after announcing that the sale of a Jacksonville, Florida office property is expected to contribute positively to GAAP and Distributable EPS in the third quarter of 2026.

See our latest analysis for Ladder Capital.

The Jacksonville sale comes as Ladder Capital’s share price has eased, with a 30 day share price return showing a 2.23% decline and a year to date decline of 13.24%, while the 5 year total shareholder return of 30.08% points to a steadier long term record.

If this kind of real estate news has your attention, it can be a good moment to broaden your watchlist and check out 19 top founder-led companies

After the recent pullback and with Ladder Capital trading below both analyst targets and some intrinsic value estimates, the spread is hard to ignore. How far does the current price sit from a reasonable view of fair value?

Preferred P/E Multiple Of 23.4x: Is It Justified For Ladder Capital?

On the numbers, Ladder Capital looks inexpensive against intrinsic and analyst estimates, yet its current P/E of 23.4x points to a much richer market tag. At a last close of $9.63, the stock is trading about 28.5% below one internal fair value estimate and at a 24.6% discount to the analyst price target of $12.00.

The P/E multiple compares Ladder Capital’s share price to its earnings per share and gives a quick read on how much investors are willing to pay for each dollar of profit. For a mortgage REIT with a mix of loans, securities and real estate, factors such as earnings quality, payout needs and funding risks all influence where that P/E settles. In this case, the company is viewed as good value on a discounted cash flow basis and is trading below analyst targets, yet reported returns are modest and recent profit trends are weaker.

That tension becomes clearer when comparing Ladder Capital with peers and with an estimated fair ratio. The current P/E of 23.4x sits well above the US Mortgage REITs industry average of 8.9x, which indicates that the stock is priced at a substantial premium to its sector. It is also higher than an estimated fair P/E of 15.6x that some models suggest the market could move toward over time if expectations change.

Explore the SWS fair ratio for Ladder Capital

Result: Price-to-earnings of 23.4x (OVERVALUED)

However, investors also need to watch Ladder Capital’s funding costs and commercial real estate credit quality, since either factor could quickly shift sentiment on the current valuation.

Find out about the key risks to this Ladder Capital narrative.

Another View On Ladder Capital’s Valuation

The P/E premium suggests the market is paying up for Ladder Capital, yet the SWS DCF model points in the opposite direction. With the stock at $9.63 and a fair value estimate of $13.46, this method frames Ladder Capital as undervalued. Which lens should carry more weight for you?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ladder Capital for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Given the mixed signals around Ladder Capital, it is worth taking a closer look at the underlying data and forming your own view quickly. To see both sides of the story in one place, check out the 3 key rewards and 4 important warning signs.

Looking For More Investment Ideas Beyond Ladder Capital?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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