Replies to post #790710 on Fannie Mae-No Politics (FNMA)

[Rodney5]

EARNINGS POWER OF THE BUSINESS

With the WARRANTS: Fannie Mae’s common stock outstanding 1,158,087,567 diluted by the warrants at 79.9 percent adds a total of 5,761,629,686 shares outstanding…

5,761,629,686 / $18.8 billion net = $3.06 per share of earnings,

PE Ratio of 14 x $3.06 = $42.84per share intrinsic value.

[Donotunderstand]

I thought FNMA earnings last year were 17B
With higher and lower years

So with warrants that is 5B shares total - 4B new

That is 3 and something in earnings per share

That should bring a price 20-30 at 5B shares

[blownaccount9]

Okay can you break down the math for me? Warrants exercise and 5.5B shares exist. $10 puts company at $55b valuation or a P/E of between 3 and 4. How you figure?