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s Rithm Capital a true bargain or just another high‑yield trap? The market’s recent pricing tells a story. After a 1.4% dip last week, the share has risen 3.4% over 30 days, 4.6% YTD, 11.9% in the last year, and surged 71.1% over three years and 95.6% over five years—indicating growing investor confidence.

    Rithm has pivoted from a niche REIT to a diversified real‑estate and credit platform. It has broadened its mortgage‑servicing and investment‑management reach and opportunistically acquired assets that others have divested. These moves have shifted sentiment toward viewing Rithm as an income and capital‑appreciation play rather than a specialty property holder.

    Our analysis gives Rithm a perfect 6/6 score for undervaluation—a rare find in this sector. We’ll examine multiple‑based, cash‑flow‑based, and asset‑based metrics, then present a more nuanced valuation framework that goes beyond conventional models.

    Last year, Rithm returned 11.9%, outperforming many mortgage REITs. The Excess Returns model starts with a book value of $12.83 and a stable book value of $12.31, both based on five‑year medians. With an average ROE of 11.06%, the model projects a stable EPS of $1.36 and a cost of equity of $1.13, yielding an excess return of $0.23 per share. Discounting these excess returns produces an intrinsic value of roughly $16.16, implying the stock trades about 29.7% below fair value.

    Bottom line: Rithm Capital appears significantly undervalued. Add it to your watchlist or portfolio, or explore 907 other undervalued cash‑flow stocks. For a detailed DCF valuation as of December 2025, see the Valuation section of our Company Report.