DCF Tool

FNMA

Federal National Mortgage Association – Real Estate Credit
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk.
Analysis Results
Intrinsic Value $1,332.27
Latest Price $0.41
Relative Value 100% undervalued
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Cash Flow (Billions)
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 24.0%.

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 24.0%, 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)
2022 58.1 53.3
2023 72.0 60.6
2024 89.3 68.9
2025 111 78.4
2026 137 89.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2000 billion. This corresponds to a present value of 1190 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 350 billion. Adding in the terminal value gives a total present value of 1540 billion.

There are presently 1.16 billion outstanding shares, so the intrinsic value per share is 1332.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,217,052,000,000
Current Cash 0
Current Liabilities 4,181,809,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,243,000,000
Change in NCWC 24,358,000,000
EBIT 32,265,000,000
Tax Provision 5,773,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 49,958,509,499
Current Assets 3,956,340,000,000
Current Cash 0
Current Liabilities 3,945,455,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,885,000,000
Change in NCWC 20,221,000,000
EBIT 18,680,000,000
Tax Provision 3,074,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 35,041,713,757
Current Assets 3,468,278,000,000
Current Cash 0
Current Liabilities 3,477,614,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -9,336,000,000
Change in NCWC 7,253,000,000
EBIT 20,009,000,000
Tax Provision 3,417,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 23,372,214,883
Current Assets 3,385,542,000,000
Current Cash 0
Current Liabilities 3,402,131,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -16,589,000,000
Change in NCWC 17,237,000,000
EBIT 20,099,000,000
Tax Provision 4,140,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 33,196,000,000
Current Assets 3,305,910,000,000
Current Cash 0
Current Liabilities 3,339,736,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -33,826,000,000
Change in NCWC 8,914,000,000
EBIT 18,447,000,000
Tax Provision 15,984,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 11,377,000,000
Current Assets 3,229,007,000,000
Current Cash 0
Current Liabilities 3,271,747,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -42,740,000,000
Change in NCWC 4,314,000,000
EBIT 18,333,000,000
Tax Provision 6,020,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 16,627,000,000
Current Assets 3,160,411,000,000
Current Cash 0
Current Liabilities 3,207,465,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -47,054,000,000
Change in NCWC 10,023,000,000
EBIT 16,208,000,000
Tax Provision 5,253,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 20,978,000,000
Current Assets 3,175,360,000,000
Current Cash 0
Current Liabilities 3,232,437,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -57,077,000,000
Change in NCWC -2,697,000,000
EBIT 21,150,000,000
Tax Provision 6,941,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 11,512,000,000
Current Assets 3,190,696,000,000
Current Cash 0
Current Liabilities 3,245,076,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -54,380,000,000
Change in NCWC -37,554,000,000
EBIT 38,567,000,000
Tax Provision -45,415,000,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 1,013,000,000
Current Assets 3,183,994,000,000
Current Cash 0
Current Liabilities 3,200,820,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -16,826,000,000
Change in NCWC 10,957,000,000
EBIT 17,220,000,000
Tax Provision 0
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 28,177,000,000

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