DCF Tool

AGM

Federal Agricultural Mortgage Corp. – Savings Institutions
the federal agricultural mortgage corporation, commonly known as farmer mac, is a stockholder-owned, government sponsored enterprise or "gse" created by congress to improve the availability of long-term credit for america's farmers, ranchers, rural homeowners, businesses and communities. farmer mac accomplishes this public policy mission by providing a secondary market for qualified agricultural mortgage loans, rural housing mortgage loans, rural utilities loans (to cooperative borrowers made by cooperative lenders) and the guaranteed portions of agricultural and rural development loans guaranteed by the u.s. department of agriculture. the farmer mac secondary market provides liquidity and lending capacity to lenders by: - purchasing newly originated and existing eligible loans directly from lenders; - exchanging loan-backed securities guaranteed by farmer mac ("farmer mac guaranteed securities") for eligible loans that back those securities in "swap" transactions; - issuing long-
Analysis Results
Intrinsic Value $570.70
Latest Price $168.70
Relative Value 70% 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 10.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 0.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.2%, 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)
2023 303 278
2024 334 281
2025 368 284
2026 406 288
2027 447 291
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6520 million. This corresponds to a present value of 3890 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1420 million. Adding in the terminal value gives a total present value of 5310 million.

There are presently 9.3 million outstanding shares, so the intrinsic value per share is 570.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 27,315,106,000
Current Cash 0
Current Liabilities 26,061,152,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,253,954,000
Change in NCWC 65,099,000
EBIT 225,679,000
Tax Provision 47,535,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 243,243,000
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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