Ladder Capital (LADR) Could Be 24% Undervalued On Q3 Earnings And Asset Sale

Ladder Capital (LADR) just posted third quarter 2026 earnings, reporting US$30.66 million in sales and US$65.87 million in net income, supported by a US$31 million gain on a Jacksonville office campus sale.

Ladder Capital’s share price has climbed 3.3% in the last day and 3.9% over the past week, yet it remains down about 18% year to date. The short-term bounce after Q3 results contrasts with weaker recent momentum and a still positive 3-year total shareholder return of roughly 27%.

Scan how other real estate and income-focused lenders are reacting to similar credit and liquidity pressures by reviewing our curated list of 33 high quality undervalued stocks that investors are watching after Ladder Capital's Q3 update.

Ladder Capital has just enjoyed a sharp, earnings driven pop while still sitting on a double digit year to date decline. Is most of the catch up already reflected, or does the current price still leave meaningful upside on the table?

Most Popular Narrative: 24% Undervalued

The most followed narrative pegs Ladder Capital’s fair value at $12.00, compared with the latest close at $9.11. This frames the recent Q3 pop as only a partial catch up move rather than a full rerating.

The numbers imply the share price reflects a material discount to undepreciated book value and a high dividend yield, which together suggest the equity market is still pricing Ladder Capital below what its investment grade balance sheet and current earnings power indicate.

See why 7 investors see Ladder Capital as 24% undervalued.

Result: Fair Value of $12.00 (UNDERVALUED)

Still, softening multifamily rents or prolonged weakness in commercial mortgage origination could pressure Ladder Capital’s collateral values, credit losses and earnings power.

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

Another View: Ladder Capital Looks Expensive On Earnings

The fair value narrative points to Ladder Capital trading below an estimated $12.00 per share. A different lens tells a tougher story. On a P/E of 11.6x, the stock trades above the US Mortgage REITs industry at 7.7x and well above its own fair ratio of 6.8x.

That gap suggests limited room for disappointment. If sentiment shifts toward the fair ratio instead of the current multiple, the share price could face pressure rather than closing the gap to the bullish target. The key question is which yardstick you trust more when you weigh the risk and potential reward here.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed messages on Ladder Capital’s value story can be confusing, so move quickly, review the data for yourself, and weigh the 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Ladder Capital?

You have seen how differently investors can frame Ladder Capital. Now widen your opportunity set and pressure test your thinking against other potential ideas.

• Target income first by scanning 8 dividend fortresses that aim to pair substantial yields with balance sheets built to handle tougher conditions.
• Hunt for quality at a discount through 20 high quality undiscovered gems that combine solid underlying metrics with limited current market attention.
• Prioritise resilience by reviewing the 32 resilient stocks with low risk scores that score well on financial strength and measured risk profiles.

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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