Rithm Capital's Valuation After Recent Share Price Slowdown: A Diversified Financial Perspective

Rithm Capital (RITM) has experienced a slowdown in its share price momentum, but has still delivered a 9.4% total shareholder return over the past year. The company's fair value is estimated to be $14.40, significantly higher than its current price of $10.79. The most popular narrative suggests Rithm Capital is undervalued and has potential for growth, driven by strong demand in the US housing market and expansion in its mortgage origination and servicing businesses. However, persistent margin pressure and high interest rates could impact growth projections.