FMCC Intrinsic Value

FMCC

Federal Home Loan Mortgage Corp – Savings Institutions

freddie mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. since our creation by congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. we are building a better housing finance system for homebuyers, renters, lenders and taxpayers.

Analysis Results

Intrinsic Value	$1,152.24
Latest Price	$0.66
Relative Value	100% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 20.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 0.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.4%, 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 (billion)	Present value (billion)
2023	31.4	28.8
2024	37.7	31.8
2025	45.4	35.1
2026	54.7	38.7
2027	65.8	42.8

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 959 billion. This corresponds to a present value of 572 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 177 billion. Adding in the terminal value gives a total present value of 749 billion.

There are presently 650.0 million outstanding shares, so the intrinsic value per share is 1152.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	3,175,400,000,000
Current Cash	0
Current Liabilities	3,153,141,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	22,259,000,000
Change in NCWC	17,830,000,000
EBIT	11,604,000,000
Tax Provision	2,277,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	27,157,000,000

Current Assets	3,001,982,000,000
Current Cash	0
Current Liabilities	2,997,553,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	4,429,000,000
Change in NCWC	9,851,000,000
EBIT	15,211,000,000
Tax Provision	3,090,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	21,969,560,365

Current Assets	2,605,580,000,000
Current Cash	0
Current Liabilities	2,611,002,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-5,422,000,000
Change in NCWC	-4,649,000,000
EBIT	9,378,000,000
Tax Provision	1,903,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	2,795,276,519

Current Assets	2,185,686,000,000
Current Cash	0
Current Liabilities	2,186,459,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-773,000,000
Change in NCWC	5,072,000,000
EBIT	9,278,000,000
Tax Provision	1,835,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	12,468,562,272

Current Assets	2,047,643,000,000
Current Cash	0
Current Liabilities	2,053,488,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-5,845,000,000
Change in NCWC	3,954,000,000
EBIT	11,643,000,000
Tax Provision	2,239,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	13,325,021,875

Current Assets	2,036,172,000,000
Current Cash	0
Current Liabilities	2,045,971,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-9,799,000,000
Change in NCWC	3,651,000,000
EBIT	17,023,000,000
Tax Provision	11,209,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	9,339,153,439

Current Assets	2,001,561,000,000
Current Cash	0
Current Liabilities	2,015,011,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-13,450,000,000
Change in NCWC	3,681,000,000
EBIT	11,926,000,000
Tax Provision	3,824,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	11,688,705,988

Current Assets	1,963,210,000,000
Current Cash	0
Current Liabilities	1,980,341,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-17,131,000,000
Change in NCWC	2,613,000,000
EBIT	9,612,000,000
Tax Provision	2,898,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	9,221,379,555

Current Assets	1,920,736,000,000
Current Cash	0
Current Liabilities	1,940,480,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-19,744,000,000
Change in NCWC	-2,265,000,000
EBIT	10,369,000,000
Tax Provision	3,312,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	4,982,555,898

Current Assets	1,930,255,000,000
Current Cash	0
Current Liabilities	1,947,734,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-17,479,000,000
Change in NCWC	-21,587,000,000
EBIT	24,261,000,000
Tax Provision	-23,305,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	2,674,000,000

Current Assets	1,981,026,000,000
Current Cash	0
Current Liabilities	1,976,918,000,000
Current Debt	0
Non-Cash Working Capital (NCWC)	4,108,000,000
Change in NCWC	11,229,000,000
EBIT	8,301,000,000
Tax Provision	-1,537,000,000
Depreciation and Amortization	0
Capital Expenditure	0
Unlevered Free Cash Flow	19,530,000,000

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