Fannie Mae-No Politics (FNMA)

[capitalismforever]

The last analysis I did was based on the Mulvaney Bill which required a $78b recap and warrants excercised in order to depart conservatorship. The result was a $12 stock price assuming a WACC of 6.5%, which is nearly equal to the 30 year cyclically adjusted PE of 14.62 that Fannie has produced.

Because I'm no longer a common holder and instead hold preferreds, the method for determining value is much different and doesn't rely on nearly as many assumptions. Matter of fact, only one assumption is required: what will the new tax rate be.

Glad I could make you chuckle. If you'd like to talk valuation, I'm your guy, lol.