Fannie Mae-No Politics (FNMA)

[Rodney5]

Patswill, always appreciate reading your work. The unknown at this time is how much shareholders equity will the treasury steal? Based on a per share price Re-IPO onto the NYSE: find below 3 calculations… regards
(note: combined earnings power).

Quote” Fannie and Freddie have be exceptionally profitable for over a decade. Following the years 2012 and 2013—Iwhen much of their temporary or estimated non-cash expenses booked between the second half of 2008 and 2011 reversed and came back as $162 billion in net income (half again what they had earned over their entire histories)—the companies’ average annual net income over the next five years, ending in 2018, was $18.5 billion, and over the following five years ending in 2023 it was $24.4 billion. They earned $28.8 billion in 2024, or $36.0 billion pre-tax, with combined credit losses of less than $1.0 billion.” End of Quote Mr Howard

Based on the provided information, a potential re-IPO price per share can be estimated:

Valuation: Plans reportedly discuss valuing Fannie Mae and Freddie Mac at approximately $500 billion or more combined.

Shares Outstanding: The number of common stock shares held by investors outside the U.S. Treasury in Fannie Mae and Freddie Mac is approximately 1.8 billion.

Calculating the potential re-IPO price per share
Dividing the $500 billion combined valuation by the 1.8 billion common shares results in an estimated price per share of approximately $277.78:

$500,000,000,000 (Combined Valuation) / 1,800,000,000 (Shares Outstanding) =

$277.78 per share

$278.78 minus 79.9% = $56.03
$278.78 minus 90% = $27.87

Important Note: This is a simplified calculation. It is based on limited information and should not be considered a definitive forecast of an actual Re-IPO price. Many factors could influence the price, and the actual number of shares offered in a re-IPO may differ from the currently outstanding shares held by outside investors.