Stock fact sheet · data as of
Redwood Capital Bancorp (RWCB): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · Value
Is RWCB undervalued?
At 34.61 (close of 16 Oct 2026), RWCB trades within a few percent of the GLS average fair value of 37.73 (8.3% below fair value). 9 models produced a value and they split 6 above the price to 3 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
The 9 models disagree widely: DDM gives 5.59 while 10 Cap gives 87.05. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RWCB under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for RWCB
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 36.42 | +5% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 46.30 | +34% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 50.68 | +46% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.57 | -64% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.18 | -79% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 87.05 | +152% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 58.88 | +70% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.59 | -84% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 34.91 | +1% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -236.01 | -782% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - RWCB passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.0 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 9.4%, ROE 9.4%, ROA 1.0% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is 1.10% with a payout ratio of 0% - a small yield that leaves most of the earnings in the business.
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 9.4% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 9.4% |
| Debt / equity | 0.00 | ROA | 1.0% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
RWCB has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 0k shares a day on a market cap of $65M, with a beta of 0.20 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 16 / 25 | 8% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 9 / 15 | moat 6.0/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 0k shares/day, $65M cap, beta 0.20 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for RWCB in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Redwood Capital Bancorp by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| FFBW FFBW, Inc. | 15.83 | 15.91 | +0% | 39No options | $65M |
| PGNN Paragon Financial Solutions, Inc. | 14.15 | 48.31 | +71% | 39No options | $65M |
| HLFN Home Loan Financial Corporation | 46.50 | 136.35 | +66% | 39No options | $66M |
| EQFN Equitable Financial Corp. | 19.90 | 30.68 | +35% | 39No options | $66M |
| OAKV Oak View Bankshares, Inc. | 19.00 | 38.98 | +51% | 39No options | $66M |
| STBI Sturgis Bancorp, Inc. | 28.94 | 63.28 | +54% | 39No options | $63M |
| IBWC IBW Financial Corporation | 97.00 | 25.36 | -283% | 12No options | $63M |
| CEFC Commercial National Financial Corporation | 15.71 | 20.04 | +22% | 39No options | $62M |
| HBSI Highlands Bankshares, Inc. | 47.00 | 78.91 | +40% | 39No options | $62M |
| CLST Catalyst Bancorp, Inc. | 16.75 | 20.94 | +20% | 39No options | $68M |
| BAOB The Baraboo Bancorporation, Inc. | 6.99 | 8.52 | +18% | 39No options | $62M |
| HFBK Harford Bank | 44.79 | 96.42 | +54% | 39No options | $68M |
⚖ Compare RWCB with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about RWCB
Is RWCB undervalued right now?
Not meaningfully: at 34.61 the stock trades within a few percent of the GLS average fair value of 37.73 (8.3% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of RWCB and what does it mean?
RWCB has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for RWCB?
37.73 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Redwood Capital Bancorp report earnings next?
No upcoming earnings date is recorded for RWCB in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does RWCB have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on RWCB, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.