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Re: None

Wednesday, 03/20/2024 5:30:03 PM

Wednesday, March 20, 2024 5:30:03 PM

Post# of 795732
Prediction of FNMA price per share once released = $205
Assumptions:
1) Data, going back to year 2000 is still valid.
2) With business model improvements and risk reductions implemented during conservatorship, adjust at least 40% (more probably 70-80% once we considered other growth factors)
3) CPI calculator has correct indexes to calculate current value; https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=82&year1=200012&year2=202402

Calculations
1) On December 2000 FNMA was trading at $82.
2) Considering inflation using CPI calculator, the price is $146.
3) Adding aforementioned 40% = $205