Replies to post #388724 on Fannie Mae-No Politics (FNMA)

[Steelhead9]

Except the 5B quarter isnt sustainable...even Tim Howard has commented on that. 10-12B annually is much more realistic in my opinion

I always come back to 12B per annum divided by 2.32B shares (dilution). That comes to 5.17 earned per share.

I multiply this by a P/E of 14 giving $72.41 per share. That is my future value 4 years out. The present value, using 6% comes to $51.05.

The last thing to be considered is how will the market discount this 50% discount is $25.50 ... 10% discount is $45.95

That's my best shot.