Fannie Mae-No Politics (FNMA)

[Rodney5]

Good morning Ftor,
You’re asking for the calculated value of your investment in Fannie Mae common stock.

Fannie Mae P/E

To calculate the price-to-earnings (P/E) ratio, you can divide a stock's current price by its earnings per share

$18.8 billion net income per year / 1,158,087,567 = $16.23 per share of earnings,

Current Price $4.47 / $16.23 earnings = 0.27 P/E

The price to earnings time valuation calculates less than one third of yearly earnings.

Value of Fannie has never been in question. How much of that value will each equity class of shareholder receive is the unknown. Senior Preferred Stock, JPS and Common Shareholders. The JPS par value is $19 billion and no more. The Seniors depends on how much equity the Treasury will possibly steal, left over goes to the Common. The Common Stock owns the company and the common is the gift that keeps on giving.

I believe the Market will easily pay 14 times earnings under favorable conditions when the Treasury gets out of the way.

PE Ratio of 14 x $16.23 = $227.22 per share intrinsic value. This value is calculated with no delusion of the common stock outstanding. Again, we do not know the amount of value the Treasury will take.

The above calculation is earnings power of the business only. Tier 1 capital refers to Fannie’s equity capital and disclosed reserves. It is used to measure the company’s capital adequacy.

Fannie Mae Latest 10Q September 30, 2024
Page 64

https://www.fanniemae.com/media/53651/display

Equity $90.5 billion should be added to price per share.

The company debt is negligible by reason debt is backed by Real Property.