Federal National Mortgage Association (FNMA)
Financial Services · OQB · US
Fundamentals
Valuation and ratings
Federal National Mortgage Association trades at USD5.75, which is 57% above the USD2.46 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 615.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Federal National Mortgage Association
Federal National Mortgage Association provides financing solutions for residential mortgages in the United States. The company operates in two segments, Single-Family and Multifamily. It offers mortgage acquisitions and securitizations; and credit risk and loss management services. The company also engages in mortgage securitization transactions, including lender swap, portfolio securitization, and structured securitization transactions; and credit risk and loss management services. Federal National Mortgage Association was incorporated in 1938 and is based in Washington, District Of Columbia.
FNMA passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Federal National Mortgage Association (FNMA) undervalued?
Against our discounted cash flow estimate of USD2.46, FNMA at USD5.75 is 57% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is FNMA's P/E ratio?
FNMA trades at 615.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.