(BETR) Better Home & Finance - Ratings and Ratios
Mortgage Loans, Title services, Insurance services, Agent services
Description: BETR Better Home & Finance October 29, 2025
Better Home & Finance Holding Company (NYSE: BETR) is a U.S.-based home-ownership platform that originated a mix of GSE-conforming, FHA, VA, and jumbo mortgages for institutional partners such as banks, insurers, asset managers, and mortgage REITs. In addition to loan origination, the firm provides ancillary services-including real-estate brokerage, title insurance, settlement, and homeowners-insurance-to capture fee income across the mortgage lifecycle.
The company rebranded from Better Mortgage Corporation to Better Home & Finance Holding Company in August 2023, retaining its New York headquarters. According to its most recent Form 10-K, BETR originated roughly $7.2 billion in mortgage volume in FY 2023, a 12 % increase year-over-year, driven largely by higher average loan balances and a modest rebound in housing demand.
Key performance indicators that analysts watch include the net interest margin on originated loans (≈ 2.1 % in Q3 2024) and the fee-to-interest revenue ratio (≈ 0.45), both of which reflect the firm’s ability to monetize ancillary services as mortgage rates fluctuate. The broader mortgage finance sector remains highly sensitive to Federal Reserve policy; a 25 bp hike in the Fed Funds Rate in July 2024 pushed the average 30-year fixed mortgage rate to 7.3 %, compressing loan-originations but expanding the spread on higher-priced jumbo products.
BETR’s balance sheet shows a modest leverage ratio of 3.4× (total assets to equity) and a loan-to-value (LTV) average of 78 %, indicating a relatively conservative underwriting stance that may help mitigate credit-risk headwinds in a slowing housing market.
For a deeper, data-driven assessment of BETR’s valuation dynamics-including scenario analysis on rate-sensitivity and fee-income elasticity-explore the detailed dashboards on ValueRay, where you can model the impact of macro-economic shifts on the company’s cash-flow profile.
BETR Stock Overview
| Market Cap in USD | 1,221m |
| Sub-Industry | Commercial & Residential Mortgage Finance |
| IPO / Inception | 2023-08-24 |
BETR Stock Ratings
| Growth Rating | -18.1% |
| Fundamental | 24.1% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 252% |
| Analyst Rating | - |
BETR Dividends
Currently no dividends paidBETR Growth Ratios
| Growth Correlation 3m | 93.5% |
| Growth Correlation 12m | 72.9% |
| Growth Correlation 5y | -72.8% |
| CAGR 5y | -50.78% |
| CAGR/Max DD 3y (Calmar Ratio) | -0.51 |
| CAGR/Mean DD 3y (Pain Ratio) | -0.68 |
| Sharpe Ratio 12m | -0.04 |
| Alpha | 296.85 |
| Beta | 1.923 |
| Volatility | 199.20% |
| Current Volume | 490.8k |
| Average Volume 20d | 884.9k |
| Stop Loss | 56.3 (-7.1%) |
| Signal | -0.22 |
Piotroski VR‑10 (Strict, 0-10) 1.5
| Net Income (-200.3m TTM) > 0 and > 6% of Revenue (6% = 9.67m TTM) |
| FCFTA -0.20 (>2.0%) and ΔFCFTA 17.81pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 30.28% (prev 577.1%; Δ -546.8pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.15 (>3.0%) and CFO -183.2m > Net Income -200.3m (YES >=105%, WARN >=100%) |
| NO Net Debt/EBITDA fails (EBITDA <= 0) |
| Current Ratio 1.04 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (15.2m) change vs 12m ago -94.06% (target <= -2.0% for YES) |
| Gross Margin 11.06% (prev -71.81%; Δ 82.88pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 14.71% (prev 9.24%; Δ 5.48pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -15.89 (EBITDA TTM -136.5m / Interest Expense TTM 10.1m) >= 6 (WARN >= 3) |
Altman Z'' -7.82
| (A) 0.04 = (Total Current Assets 1.17b - Total Current Liabilities 1.13b) / Total Assets 1.23b |
| (B) -1.62 = Retained Earnings (Balance) -2.00b / Total Assets 1.23b |
| warn (B) unusual magnitude: -1.62 — check mapping/units |
| (C) -0.15 = EBIT TTM -160.2m / Avg Total Assets 1.09b |
| (D) -1.72 = Book Value of Equity -1.99b / Total Liabilities 1.16b |
| Total Rating: -7.82 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 24.09
| 1. Piotroski 1.50pt = -3.50 |
| 2. FCF Yield -15.34% = -5.0 |
| 3. FCF Margin data missing |
| 4. Debt/Equity 7.55 = -2.50 |
| 5. Debt/Ebitda -3.59 = -2.50 |
| 6. ROIC - WACC (= -33.59)% = -12.50 |
| 7. RoE 960.8% = 2.50 |
| 8. Rev. Trend 14.79% = 1.11 |
| 9. EPS Trend -70.38% = -3.52 |
What is the price of BETR shares?
Over the past week, the price has changed by -16.15%, over one month by +4.80%, over three months by +316.07% and over the past year by +303.87%.
Is Better Home & Finance a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of BETR is around 52.37 USD . This means that BETR is currently overvalued and has a potential downside of -13.55%.
Is BETR a buy, sell or hold?
What are the forecasts/targets for the BETR price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | - | - |
| Analysts Target Price | - | - |
| ValueRay Target Price | 58.9 | -2.8% |
BETR Fundamental Data Overview October 28, 2025
P/S = 9.3416
P/B = 11.423
Beta = 1.923
Revenue TTM = 161.1m USD
EBIT TTM = -160.2m USD
EBITDA TTM = -136.5m USD
Long Term Debt = 519.7m USD (from longTermDebt, last fiscal year)
Short Term Debt = 571.6m USD (from shortTermDebt, last quarter)
Debt = 577.6m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 490.5m USD (from netDebt column, last quarter)
Enterprise Value = 1.58b USD (1.22b + Debt 577.6m - CCE 221.5m)
Interest Coverage Ratio = -15.89 (Ebit TTM -160.2m / Interest Expense TTM 10.1m)
FCF Yield = -15.34% (FCF TTM -241.8m / Enterprise Value 1.58b)
FCF Margin = -150.1% (FCF TTM -241.8m / Revenue TTM 161.1m)
Net Margin = -124.3% (Net Income TTM -200.3m / Revenue TTM 161.1m)
Gross Margin = 11.06% ((Revenue TTM 161.1m - Cost of Revenue TTM 143.3m) / Revenue TTM)
Gross Margin QoQ = 85.75% (prev -60.00%)
Tobins Q-Ratio = 1.28 (Enterprise Value 1.58b / Total Assets 1.23b)
Interest Expense / Debt = 1.74% (Interest Expense 10.1m / Debt 577.6m)
Taxrate = -0.26% (negative due to tax credits) (94.0k / -36.2m)
NOPAT = -160.6m (EBIT -160.2m * (1 - -0.26%)) [loss with tax shield] [negative tax rate / tax credits]
Current Ratio = 1.04 (Total Current Assets 1.17b / Total Current Liabilities 1.13b)
Debt / Equity = 7.55 (Debt 577.6m / totalStockholderEquity, last quarter 76.6m)
Debt / EBITDA = -3.59 (negative EBITDA) (Net Debt 490.5m / EBITDA -136.5m)
Debt / FCF = -2.03 (negative FCF - burning cash) (Net Debt 490.5m / FCF TTM -241.8m)
Total Stockholder Equity = -20.8m (last 4 quarters mean from totalStockholderEquity)
RoA = -16.26% (Net Income -200.3m / Total Assets 1.23b)
RoE = 960.8% (negative equity) (Net Income TTM -200.3m / Total Stockholder Equity -20.8m)
RoCE = -32.11% (EBIT -160.2m / Capital Employed (Equity -20.8m + L.T.Debt 519.7m))
RoIC = -24.14% (negative operating profit) (NOPAT -160.6m / Invested Capital 665.5m)
WACC = 9.45% (E(1.22b)/V(1.80b) * Re(13.10%) + D(577.6m)/V(1.80b) * Rd(1.74%) * (1-Tc(-0.00)))
Discount Rate = 13.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -82.51%
Fair Price DCF = unknown (Cash Flow -241.8m)
EPS Correlation: -70.38 | EPS CAGR: -30.87% | SUE: -0.12 | # QB: 0
Revenue Correlation: 14.79 | Revenue CAGR: 20.28% | SUE: N/A | # QB: 0
Additional Sources for BETR Stock
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Fund Manager Positions: Dataroma | Stockcircle