Replies to post #782268 on Fannie Mae-No Politics (FNMA)

[trunkmonk]

The lost value calculation should start with the number $436.1 billion. This is the Intrinsic Value of both companies businesses including the JPS, the estimated value of Fannie and Freddie.

$402.9 billion earnings power plus $33.2 billion JPS = $436.1 billion.

Fannie Mae
EARNINGS POWER OF THE BUSINESS
$263 Billion Intrinsic Value

Freddie Mac
EARNINGS POWER OF THE BUSINESS
$139.9 Billion Intrinsic Value

Fannie Mae JPS $19.1 billion par value
Freddie Mac JPS $14.1 billion par value

The amount of $402.9 billion is the calculated Intrinsic Value of the Earnings Power of both businesses combined using a Price to Earnings Ratio of 14.

. I can live with this. Our Time is coming.

[stockprofitter]

PE of 14 is way to low as compared to industry average.

Should be more like 25 +-