Replies to post #732931 on Fannie Mae-No Politics (FNMA)

[Rodney5]

Without the Warrants
Earnings Power of the Business
A multiple of 14 is not unreasonable

Fannie Mae
07/29/2022
Reports $4.7 Billion for Second Quarter 2022

EARNINGS POWER OF THE BUSINESS
Market Cap $263 Billion
Fannie Mae’s common stock outstanding 1,158,087,567

$4.7 billion net income for the second quarter of 2022.
Fannie Mae’s net earnings $4.7 billion per quarter, a projection of $18.8 billion net per year.

$18.8 billion net / 1,158,087,567 = $16.23 per share of earnings
PE Ratio of 14 x $16.23 = $227.22 per share Intrinsic Value