Replies to post #365327 on Fannie Mae-No Politics (FNMA)

[chessmaster315]

Fosco says the "fair value" is $160 per share.

THe most recent quarter earnings was 2.9 billion. That's about 12 billion per year.

12 billion with a P/E of 9 (prior to cship) equates to about 108 billion divided by
1.1 billion shares equals 98.00 per share.

I think this (conservative) valuation of 98.00 per share is fairly accurate, and consitent with a modest gain, that shareholders mostly missed out on, from the period 2007 to 2017..a ten year span.

The NASDAQ index 100 is up 205% for the past 10 years.

So, a pps share of "about" 100 per share is consistent with a P/E of 9, and the Nasdaq 10 year average return.

The PPS will depend on future earnings, and investors perception of where this will go.
Berkowitz says this company will earn 20 billion, which makes these numbers nearly double, and is consistent with Fosco's "fair value" estimate of $160 per share.