DCF Tool

AGM

Federal Agricultural Mortgage Corp. – Savings Institutions
Farmer Mac is a vital part of the agricultural credit markets and was created to increase access to and reduce the cost of credit for the benefit of American agricultural and rural communities. As the nation's secondary market for agricultural credit, Farmer Mac provides financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. Farmer Mac's customers benefit from its low cost of funds, low overhead costs, and high operational efficiency.
Analysis Results
Intrinsic Value $997.50
Latest Price $119.80
Relative Value 88% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 0.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 401 368
2023 478 402
2024 569 440
2025 679 481
2026 809 526
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11800 million. This corresponds to a present value of 7030 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2220 million. Adding in the terminal value gives a total present value of 9250 million.

There are presently 9.27 million outstanding shares, so the intrinsic value per share is 997.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 25,129,933,000
Current Cash 0
Current Liabilities 23,941,078,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,188,855,000
Change in NCWC 214,699,000
EBIT 167,613,000
Tax Provision 35,353,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 346,959,000
Current Assets 24,337,180,000
Current Cash 0
Current Liabilities 23,363,024,000
Current Debt 0
Non-Cash Working Capital (NCWC) 974,156,000
Change in NCWC 193,160,000
EBIT 137,433,000
Tax Provision 28,785,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 301,808,000
Current Assets 21,691,094,000
Current Cash 0
Current Liabilities 20,910,098,000
Current Debt 0
Non-Cash Working Capital (NCWC) 780,996,000
Change in NCWC 34,936,000
EBIT 138,651,000
Tax Provision 29,105,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 144,482,000
Current Assets 18,687,831,000
Current Cash 0
Current Liabilities 17,941,771,000
Current Debt 0
Non-Cash Working Capital (NCWC) 746,060,000
Change in NCWC 40,101,000
EBIT 136,022,000
Tax Provision 27,942,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 148,181,000
Current Assets 17,790,087,000
Current Cash 0
Current Liabilities 17,084,128,000
Current Debt 0
Non-Cash Working Capital (NCWC) 705,959,000
Change in NCWC 76,131,000
EBIT 130,686,000
Tax Provision 46,369,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 160,448,000
Current Assets 15,592,201,000
Current Cash 0
Current Liabilities 14,962,373,000
Current Debt 0
Non-Cash Working Capital (NCWC) 629,828,000
Change in NCWC 120,393,000
EBIT 119,357,000
Tax Provision 42,057,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 197,693,000
Current Assets 15,496,069,000
Current Cash 0
Current Liabilities 14,986,634,000
Current Debt 0
Non-Cash Working Capital (NCWC) 509,435,000
Change in NCWC -238,582,000
EBIT 108,078,000
Tax Provision 34,239,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow -164,743,000
Current Assets 14,254,009,000
Current Cash 0
Current Liabilities 13,505,992,000
Current Debt 0
Non-Cash Working Capital (NCWC) 748,017,000
Change in NCWC 220,210,000
EBIT 73,106,000
Tax Provision 2,824,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 290,492,000
Current Assets 13,315,118,000
Current Cash 0
Current Liabilities 12,787,311,000
Current Debt 0
Non-Cash Working Capital (NCWC) 527,807,000
Change in NCWC -58,047,000
EBIT 131,267,000
Tax Provision 33,752,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 39,468,000
Current Assets 12,615,093,000
Current Cash 0
Current Liabilities 12,029,239,000
Current Debt 0
Non-Cash Working Capital (NCWC) 585,854,000
Change in NCWC 34,207,000
EBIT 91,116,000
Tax Provision 22,156,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 103,167,000

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