DCF Tool

MFA

MFA Financial Inc – Other Financial Vehicles
MFA Financial, Inc. is a real estate investment trust primarily engaged in the business of investing, on a leveraged basis, in residential mortgage assets, including residential mortgage-backed securities and residential whole loans.
Analysis Results
Intrinsic Value $18.83
Latest Price $7.78
Relative Value 59% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 -6.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 1.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -6.8%, 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 0.192 0.176
2023 0.179 0.15
2024 0.167 0.129
2025 0.155 0.11
2026 0.145 0.0941
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2.11 billion. This corresponds to a present value of 1.26 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.659 billion. Adding in the terminal value gives a total present value of 1.92 billion.

There are presently 102.0 million outstanding shares, so the intrinsic value per share is 18.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,716,036,000
Current Cash 0
Current Liabilities 6,551,863,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,164,173,000
Change in NCWC -30,780,000
EBIT 267,337,000
Tax Provision 0
Depreciation and Amortization 0
Capital Expenditure -12,048,000
Unlevered Free Cash Flow 224,509,000
Current Assets 6,602,451,000
Current Cash 0
Current Liabilities 4,407,498,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,194,953,000
Change in NCWC -629,348,000
EBIT -634,956,000
Tax Provision 0
Depreciation and Amortization 0
Capital Expenditure -4,862,000
Unlevered Free Cash Flow -1,269,166,000
Current Assets 13,007,713,000
Current Cash 0
Current Liabilities 10,183,412,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,824,301,000
Change in NCWC -335,198,000
EBIT 378,117,000
Tax Provision 0
Depreciation and Amortization 3,318,000
Capital Expenditure -1,879,000
Unlevered Free Cash Flow 44,358,000
Current Assets 12,163,725,000
Current Cash 0
Current Liabilities 9,004,226,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,159,499,000
Change in NCWC 57,408,000
EBIT 301,801,000
Tax Provision 0
Depreciation and Amortization 1,825,000
Capital Expenditure -1,133,000
Unlevered Free Cash Flow 359,901,000
Current Assets 10,795,189,000
Current Cash 0
Current Liabilities 7,693,098,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,102,091,000
Change in NCWC 155,881,000
EBIT 322,393,000
Tax Provision 0
Depreciation and Amortization 1,519,000
Capital Expenditure -872,000
Unlevered Free Cash Flow 478,921,000
Current Assets 12,396,330,000
Current Cash 0
Current Liabilities 9,450,120,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,946,210,000
Change in NCWC -13,862,000
EBIT 312,668,000
Tax Provision 0
Depreciation and Amortization 964,000
Capital Expenditure -708,000
Unlevered Free Cash Flow 299,062,000
Current Assets 13,160,134,000
Current Cash 0
Current Liabilities 10,200,062,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,960,072,000
Change in NCWC -236,011,000
EBIT 313,226,000
Tax Provision 0
Depreciation and Amortization 860,000
Capital Expenditure -1,560,000
Unlevered Free Cash Flow 76,515,000
Current Assets 12,347,555,000
Current Cash 0
Current Liabilities 9,151,472,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,196,083,000
Change in NCWC 61,021,000
EBIT 313,504,000
Tax Provision 0
Depreciation and Amortization 1,191,000
Capital Expenditure -786,000
Unlevered Free Cash Flow 374,930,000
Current Assets 12,464,719,000
Current Cash 0
Current Liabilities 9,329,657,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,135,062,000
Change in NCWC -168,755,000
EBIT 302,709,000
Tax Provision 0
Depreciation and Amortization 5,831,000
Capital Expenditure -373,000
Unlevered Free Cash Flow 139,412,000
Current Assets 13,510,361,000
Current Cash 0
Current Liabilities 10,206,544,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,303,817,000
Change in NCWC 813,246,000
EBIT 306,839,000
Tax Provision 0
Depreciation and Amortization 3,534,000
Capital Expenditure -443,000
Unlevered Free Cash Flow 1,123,176,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.