<div id="readability-page-1"><div><ul> <li>If you are wondering whether AGNC Investment's share price really reflects its underlying value, you are not alone. Many income focused investors keep a close eye on this mortgage REIT.</li> <li>The stock last closed at US$11.36, with returns of 3.9% year to date and 26.0% over 1 year. Shorter term moves have been softer, with a 0.7% decline over 7 days and a 1.8% decline over 30 days.</li> <li>Recent headlines around AGNC have focused on its role as a mortgage REIT in a changing interest rate backdrop, including commentary on how its portfolio positioning and leverage policy respond to shifts in bond markets. These themes help frame why the share price has seen both longer term gains and shorter term pullbacks as investors reassess risk and income prospects.</li> <li>On our checks, AGNC scores a 5 out of 6 valuation rating. This suggests it screens as undervalued across most of our metrics. Next we will walk through the key valuation approaches before finishing with a broader framework that can help you judge its value more clearly.</li> </ul> <p>AGNC Investment delivered 26.0% returns over the last year. See how this stacks up to the rest of the Mortgage REITs industry.</p> <h3>Approach 1: AGNC Investment Excess Returns Analysis</h3> <p>The Excess Returns model looks at how much profit a company is expected to generate above the return that equity investors require, then capitalizes those surplus profits into an intrinsic value per share.</p> <p>For AGNC Investment, the starting point is its book value of $9.41 per share and a stable earnings figure of $1.51 per share, based on weighted future Return on Equity estimates from 4 analysts. The average Return on Equity is 15.67%, compared with a cost of equity of $0.93 per share. That gap is the excess return, estimated at $0.59 per share.</p> <p>The model also uses a stable book value of $9.66 per share, again drawn from weighted future Book Value estimates from 4 analysts. Together, these inputs are used to project the stream of future excess returns and convert them into an estimated intrinsic value of about $19.10 per share.</p> <p>Against the recent share price of $11.36, this Excess Returns valuation implies the stock is 40.5% undervalued. This suggests the market is pricing AGNC below the value indicated by its expected return on equity.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Excess Returns analysis suggests AGNC Investment is undervalued by 40.5%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c4d2911f-31d4-4913-a7ee-2f5417d173ac/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c4d2911f-31d4-4913-a7ee-2f5417d173ac/chart/dcf"/><figcaption>AGNC Discounted Cash Flow as at Feb 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for AGNC Investment.</p> <h3>Approach 2: AGNC Investment Price vs Earnings</h3> <p>For profitable companies like AGNC Investment, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings. It gives you a quick sense of how the market values those earnings relative to other options you could invest in.</p> <p>What counts as a normal or fair P/E usually reflects two broad ideas: how much growth investors expect from those earnings, and how much risk they see in the business. Higher expected growth or lower perceived risk often lines up with a higher P/E, while lower growth or higher risk can support a lower multiple.</p> <p>AGNC currently trades on a P/E of 8.34x. That sits below the Mortgage REITs industry average P/E of 12.45x and the broader peer average of 17.55x. Simply Wall St also calculates a Fair Ratio for AGNC of 13.62x. This is a proprietary view of what the P/E could be based on factors such as earnings growth, profit margins, industry, market cap and specific risk profile, rather than just a straight comparison with peers.</p> <p>Because the Fair Ratio of 13.62x is higher than the current P/E of 8.34x, AGNC screens as undervalued on this P/E based approach.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c4d2911f-31d4-4913-a7ee-2f5417d173ac/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c4d2911f-31d4-4913-a7ee-2f5417d173ac/chart/pe-multiple-vs-industry"/><figcaption>NasdaqGS:AGNC P/E Ratio as at Feb 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 23 top founder-led companies.</p> <h3>Upgrade Your Decision Making: Choose your AGNC Investment Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St's Community page you can use Narratives, where you spell out your story for AGNC Investment by linking your own assumptions for future revenue, earnings, margins and a fair value to the current share price. You can then see in real time how that view changes as new information such as earnings or news arrives. For example, one investor might lean toward the higher US$11.00 analyst price target because they are comfortable with forecasts like revenue of US$2.3b, earnings of US$1.7b and a future P/E of 8.8x. Another might anchor on the lower US$8.25 target if they focus more on risks such as interest rate volatility or the recent comprehensive loss of $0.11 per share and slightly negative economic return. By comparing each Narrative fair value to the live price, you have a clear, up to date framework to help you decide whether the stock currently looks attractive, fully priced or expensive.</p> <p>Do you think there's more to the story for AGNC Investment? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c4d2911f-31d4-4913-a7ee-2f5417d173ac/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c4d2911f-31d4-4913-a7ee-2f5417d173ac/chart/quote-price"/><figcaption>NasdaqGS:AGNC 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

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<p>AGNC Investment's share price closed at $11.36, reflecting a 26.0% return over the past year. Despite recent declines, the stock is considered undervalued by 40.5% based on Excess Returns analysis, with an intrinsic value estimated at $19.10 per share. The P/E ratio of 8.34x is below the industry average, further indicating undervaluation. Investors are encouraged to assess AGNC's value through various valuation approaches, including its earnings potential and market positioning in the mortgage REIT sector.</p>

Simplywall

AGNC Investment Pref Shares AGNC 9.67459 Perp 04/11/25

AGNC INVESTMENT CORP 6.875% DEP SHS REP 1/1000TH PFD SR D

VanEck Mortgage REIT Income ETF

AGNC Investment Pref Share AGNCL 7.75 Perp 10/15/27

AGNC INVESTMENT CORP DEP SHS REPSTG 1/1000TH PFD SER H

AGNC Investment

AGNC Investment Pref Share AGNCP 6.125 Perp 04/15/25 F

AGNC Investment Pref Share AGNC 6.5 Prep 10/15/24 E

Is AGNC Investment (AGNC) Attractively Priced After Strong One Year Share Price Performance?