Fannie Mae-No Politics (FNMA)

[FOFreddie]

Using CBO assumption of 8 pct ROI by new investors with 8 pct growth rate. Ballpark- 175 Equity Value - 25 bn JPS - 50 bn new equity = 100 bn Net Equity Value with 10 to 15bn in earnings in the 2025 -2027 period. CBO assumes new stock offerings start in 2025.

Best Case Scenario - if you assume twice of the implied cap rate or half implied PE - you are at $ 15 per share which is the same payoff for JPS which is $40 per share. - 20X.75 = $ 15 and 20X $ 2 = $40