Fannie Mae-No Politics (FNMA)

[capitalismforever]

Because the value arrived at is my interpretation of what the value of the company is, I thought it'd be interesting to use Tim Howards assumptions from his website: https://howardonmortgagefinance.com/2016/10/25/getting-real-about-reform/

$10.6b NI x 10 PE = $106b Mkt cap
$106b - $19.13b pfd's = $86.87b mkt cap attributable to commons
$60b recap assumption
$60b / $86.87b = 69.07% weight of recap
100% - 69.07% = 30.93% weight value of total shares
5.893b current shares out / 30.93% = 19.05b total shares required
$86.87b / 19.05b = $4.56 pps valuation

*Note: The $60b recap assumption was pulled from his statement in the comments section of a software arrive on his website. I'll look for that comment later if anyone would like it. $60b was the minimal about he believed the recap should be.

In a previous post I was asked what I believed in which I replied $8 - $12 pps for the commons. Using Mr. Howard's assumptions it would seem my valuation is on the high side compared to him.