Intrinsic value of Federal Agricultural Mortgage Cl C - AGM

Previous Close

$76.11

  Intrinsic Value

$344.48

stock screener

  Rating & Target

str. buy

+353%

  Value-price divergence*

-135%

Previous close

$76.11

 
Intrinsic value

$344.48

 
Up/down potential

+353%

 
Rating

str. buy

 
Value-price divergence*

-135%

Our model is not good at valuating stocks of financial companies, such as AGM.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AGM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  17.74
  32.50
  29.75
  27.28
  25.05
  23.04
  21.24
  19.61
  18.15
  16.84
  15.65
  14.59
  13.63
  12.77
  11.99
  11.29
  10.66
  10.10
  9.59
  9.13
  8.71
  8.34
  8.01
  7.71
  7.44
  7.19
  6.97
  6.78
  6.60
  6.44
  6.30
Revenue, $m
  312
  413
  536
  683
  854
  1,050
  1,273
  1,523
  1,800
  2,103
  2,432
  2,787
  3,167
  3,571
  3,999
  4,451
  4,925
  5,422
  5,942
  6,485
  7,050
  7,638
  8,250
  8,885
  9,546
  10,233
  10,947
  11,689
  12,460
  13,262
  14,097
Variable operating expenses, $m
 
  252
  327
  416
  520
  640
  776
  928
  1,096
  1,281
  1,481
  1,697
  1,928
  2,175
  2,435
  2,710
  2,999
  3,302
  3,619
  3,949
  4,293
  4,651
  5,024
  5,411
  5,814
  6,232
  6,667
  7,118
  7,588
  8,077
  8,585
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  196
  252
  327
  416
  520
  640
  776
  928
  1,096
  1,281
  1,481
  1,697
  1,928
  2,175
  2,435
  2,710
  2,999
  3,302
  3,619
  3,949
  4,293
  4,651
  5,024
  5,411
  5,814
  6,232
  6,667
  7,118
  7,588
  8,077
  8,585
Operating income, $m
  116
  162
  210
  267
  334
  411
  498
  596
  704
  822
  951
  1,090
  1,238
  1,396
  1,564
  1,740
  1,926
  2,120
  2,323
  2,535
  2,756
  2,986
  3,226
  3,474
  3,733
  4,001
  4,280
  4,570
  4,872
  5,186
  5,512
EBITDA, $m
  116
  162
  210
  267
  334
  411
  498
  596
  704
  822
  951
  1,090
  1,238
  1,396
  1,564
  1,740
  1,926
  2,120
  2,323
  2,535
  2,756
  2,986
  3,226
  3,474
  3,733
  4,001
  4,280
  4,570
  4,872
  5,186
  5,512
Interest expense (income), $m
  111
  509
  646
  839
  1,070
  1,339
  1,649
  2,000
  2,394
  2,829
  3,306
  3,825
  4,384
  4,982
  5,619
  6,293
  7,004
  7,752
  8,535
  9,353
  10,208
  11,098
  12,024
  12,988
  13,989
  15,030
  16,112
  17,236
  18,404
  19,619
  20,883
Earnings before tax, $m
  119
  -347
  -436
  -572
  -736
  -928
  -1,151
  -1,405
  -1,690
  -2,007
  -2,356
  -2,735
  -3,146
  -3,586
  -4,055
  -4,553
  -5,079
  -5,631
  -6,211
  -6,818
  -7,451
  -8,111
  -8,799
  -9,513
  -10,257
  -11,029
  -11,831
  -12,665
  -13,532
  -14,433
  -15,371
Tax expense, $m
  42
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  77
  -347
  -436
  -572
  -736
  -928
  -1,151
  -1,405
  -1,690
  -2,007
  -2,356
  -2,735
  -3,146
  -3,586
  -4,055
  -4,553
  -5,079
  -5,631
  -6,211
  -6,818
  -7,451
  -8,111
  -8,799
  -9,513
  -10,257
  -11,029
  -11,831
  -12,665
  -13,532
  -14,433
  -15,371

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  265
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  15,606
  20,670
  26,819
  34,134
  42,684
  52,520
  63,674
  76,163
  89,990
  105,142
  121,601
  139,341
  158,333
  178,547
  199,955
  222,532
  246,258
  271,120
  297,110
  324,229
  352,485
  381,894
  412,480
  444,275
  477,317
  511,653
  547,337
  584,428
  622,996
  663,112
  704,856
Adjusted assets (=assets-cash), $m
  15,341
  20,670
  26,819
  34,134
  42,684
  52,520
  63,674
  76,163
  89,990
  105,142
  121,601
  139,341
  158,333
  178,547
  199,955
  222,532
  246,258
  271,120
  297,110
  324,229
  352,485
  381,894
  412,480
  444,275
  477,317
  511,653
  547,337
  584,428
  622,996
  663,112
  704,856
Revenue / Adjusted assets
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
  0.020
Average production assets, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Working capital, $m
  0
  207
  268
  341
  427
  525
  637
  762
  900
  1,051
  1,216
  1,393
  1,583
  1,785
  2,000
  2,225
  2,463
  2,711
  2,971
  3,242
  3,525
  3,819
  4,125
  4,443
  4,773
  5,117
  5,473
  5,844
  6,230
  6,631
  7,049
Total debt, $m
  14,806
  18,446
  23,980
  30,564
  38,259
  47,111
  57,150
  68,390
  80,834
  94,471
  109,284
  125,250
  142,342
  160,535
  179,802
  200,122
  221,475
  243,851
  267,242
  291,649
  317,080
  343,548
  371,075
  399,690
  429,428
  460,331
  492,446
  525,829
  560,539
  596,643
  634,214
Total liabilities, $m
  14,963
  18,603
  24,137
  30,721
  38,416
  47,268
  57,307
  68,547
  80,991
  94,628
  109,441
  125,407
  142,499
  160,692
  179,959
  200,279
  221,632
  244,008
  267,399
  291,806
  317,237
  343,705
  371,232
  399,847
  429,585
  460,488
  492,603
  525,986
  560,696
  596,800
  634,371
Total equity, $m
  643
  2,067
  2,682
  3,413
  4,268
  5,252
  6,367
  7,616
  8,999
  10,514
  12,160
  13,934
  15,833
  17,855
  19,995
  22,253
  24,626
  27,112
  29,711
  32,423
  35,249
  38,189
  41,248
  44,427
  47,732
  51,165
  54,734
  58,443
  62,300
  66,311
  70,486
Total liabilities and equity, $m
  15,606
  20,670
  26,819
  34,134
  42,684
  52,520
  63,674
  76,163
  89,990
  105,142
  121,601
  139,341
  158,332
  178,547
  199,954
  222,532
  246,258
  271,120
  297,110
  324,229
  352,486
  381,894
  412,480
  444,274
  477,317
  511,653
  547,337
  584,429
  622,996
  663,111
  704,857
Debt-to-equity ratio
  23.026
  8.920
  8.940
  8.950
  8.960
  8.970
  8.980
  8.980
  8.980
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
Adjusted equity ratio
  0.025
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  77
  -347
  -436
  -572
  -736
  -928
  -1,151
  -1,405
  -1,690
  -2,007
  -2,356
  -2,735
  -3,146
  -3,586
  -4,055
  -4,553
  -5,079
  -5,631
  -6,211
  -6,818
  -7,451
  -8,111
  -8,799
  -9,513
  -10,257
  -11,029
  -11,831
  -12,665
  -13,532
  -14,433
  -15,371
Depreciation, amort., depletion, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Funds from operations, $m
  241
  -347
  -436
  -572
  -736
  -928
  -1,151
  -1,405
  -1,690
  -2,007
  -2,356
  -2,735
  -3,146
  -3,586
  -4,055
  -4,553
  -5,079
  -5,631
  -6,211
  -6,818
  -7,451
  -8,111
  -8,799
  -9,513
  -10,257
  -11,029
  -11,831
  -12,665
  -13,532
  -14,433
  -15,371
Change in working capital, $m
  32
  51
  61
  73
  85
  98
  112
  125
  138
  152
  165
  177
  190
  202
  214
  226
  237
  249
  260
  271
  283
  294
  306
  318
  330
  343
  357
  371
  386
  401
  417
Cash from operations, $m
  209
  -398
  -497
  -646
  -821
  -1,027
  -1,262
  -1,530
  -1,828
  -2,158
  -2,520
  -2,913
  -3,335
  -3,788
  -4,269
  -4,779
  -5,316
  -5,880
  -6,471
  -7,089
  -7,734
  -8,405
  -9,104
  -9,831
  -10,587
  -11,372
  -12,188
  -13,036
  -13,918
  -14,834
  -15,788
Maintenance CAPEX, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
New CAPEX, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from investing activities, $m
  -593
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Free cash flow, $m
  -384
  -398
  -497
  -646
  -821
  -1,027
  -1,262
  -1,530
  -1,828
  -2,158
  -2,520
  -2,913
  -3,335
  -3,788
  -4,269
  -4,779
  -5,316
  -5,880
  -6,471
  -7,089
  -7,734
  -8,405
  -9,104
  -9,831
  -10,587
  -11,372
  -12,188
  -13,036
  -13,918
  -14,834
  -15,788
Issuance/(repayment) of debt, $m
  -529
  3,905
  5,534
  6,583
  7,695
  8,852
  10,039
  11,240
  12,443
  13,637
  14,813
  15,966
  17,093
  18,193
  19,267
  20,319
  21,354
  22,376
  23,391
  24,407
  25,430
  26,468
  27,527
  28,615
  29,738
  30,903
  32,115
  33,383
  34,710
  36,104
  37,570
Issuance/(repurchase) of shares, $m
  -9
  1,771
  1,051
  1,304
  1,591
  1,912
  2,266
  2,654
  3,073
  3,522
  4,001
  4,509
  5,045
  5,607
  6,196
  6,811
  7,451
  8,118
  8,810
  9,530
  10,277
  11,052
  11,857
  12,693
  13,561
  14,462
  15,400
  16,375
  17,389
  18,445
  19,545
Cash from financing (excl. dividends), $m  
  -536
  5,676
  6,585
  7,887
  9,286
  10,764
  12,305
  13,894
  15,516
  17,159
  18,814
  20,475
  22,138
  23,800
  25,463
  27,130
  28,805
  30,494
  32,201
  33,937
  35,707
  37,520
  39,384
  41,308
  43,299
  45,365
  47,515
  49,758
  52,099
  54,549
  57,115
Total cash flow (excl. dividends), $m
  -921
  5,278
  6,088
  7,242
  8,464
  9,737
  11,043
  12,365
  13,688
  15,001
  16,294
  17,563
  18,802
  20,012
  21,194
  22,351
  23,489
  24,613
  25,730
  26,848
  27,973
  29,115
  30,280
  31,477
  32,712
  33,993
  35,327
  36,721
  38,181
  39,715
  41,327
Retained Cash Flow (-), $m
  -89
  -1,771
  -1,051
  -1,304
  -1,591
  -1,912
  -2,266
  -2,654
  -3,073
  -3,522
  -4,001
  -4,509
  -5,045
  -5,607
  -6,196
  -6,811
  -7,451
  -8,118
  -8,810
  -9,530
  -10,277
  -11,052
  -11,857
  -12,693
  -13,561
  -14,462
  -15,400
  -16,375
  -17,389
  -18,445
  -19,545
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,507
  5,037
  5,938
  6,873
  7,825
  8,776
  9,711
  10,615
  11,479
  12,293
  13,053
  13,757
  14,405
  14,998
  15,541
  16,038
  16,495
  16,920
  17,318
  17,697
  18,063
  18,423
  18,784
  19,151
  19,530
  19,927
  20,346
  20,793
  21,270
  21,782
Discount rate, %
 
  15.10
  15.86
  16.65
  17.48
  18.35
  19.27
  20.24
  21.25
  22.31
  23.43
  24.60
  25.83
  27.12
  28.47
  29.90
  31.39
  32.96
  34.61
  36.34
  38.16
  40.06
  42.07
  44.17
  46.38
  48.70
  51.13
  53.69
  56.38
  59.19
  62.15
PV of cash for distribution, $m
 
  3,047
  3,753
  3,741
  3,608
  3,370
  3,049
  2,673
  2,273
  1,874
  1,498
  1,162
  874
  637
  449
  307
  203
  130
  80
  48
  28
  15
  8
  4
  2
  1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  31.6
  22.6
  16.3
  11.9
  8.8
  6.6
  5.0
  3.8
  2.9
  2.2
  1.7
  1.3
  1.0
  0.8
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0

Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company's segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).

FINANCIAL RATIOS  of  Federal Agricultural Mortgage Cl C (AGM)

Valuation Ratios
P/E Ratio 10.4
Price to Sales 2.6
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 3.8
Price to Free Cash Flow 3.8
Growth Rates
Sales Growth Rate 17.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 990%
Total Debt to Equity 2302.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 1%
Ret/ On Assets - 3 Yr. Avg. 1.2%
Return On Total Capital 0.5%
Ret/ On T. Cap. - 3 Yr. Avg. 0.4%
Return On Equity 12.9%
Return On Equity - 3 Yr. Avg. 12.1%
Asset Turnover 0
Profitability Ratios
Gross Margin 44.9%
Gross Margin - 3 Yr. Avg. 40.5%
EBITDA Margin 73.7%
EBITDA Margin - 3 Yr. Avg. 85.6%
Operating Margin 37.2%
Oper. Margin - 3 Yr. Avg. 33.2%
Pre-Tax Margin 38.1%
Pre-Tax Margin - 3 Yr. Avg. 36.4%
Net Profit Margin 24.7%
Net Profit Margin - 3 Yr. Avg. 23.5%
Effective Tax Rate 35.3%
Eff/ Tax Rate - 3 Yr. Avg. 23.6%
Payout Ratio 31.2%

AGM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AGM stock intrinsic value calculation we used $312 million for the last fiscal year's total revenue generated by Federal Agricultural Mortgage Cl C. The default revenue input number comes from 2016 income statement of Federal Agricultural Mortgage Cl C. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AGM stock valuation model: a) initial revenue growth rate of 32.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 15.1%, whose default value for AGM is calculated based on our internal credit rating of Federal Agricultural Mortgage Cl C, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Federal Agricultural Mortgage Cl C.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AGM stock the variable cost ratio is equal to 60.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AGM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Federal Agricultural Mortgage Cl C.

Corporate tax rate of 27% is the nominal tax rate for Federal Agricultural Mortgage Cl C. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AGM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AGM are equal to 0%.

Life of production assets of 10 years is the average useful life of capital assets used in Federal Agricultural Mortgage Cl C operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AGM is equal to 50%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $643 million for Federal Agricultural Mortgage Cl C - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 10.74 million for Federal Agricultural Mortgage Cl C is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Federal Agricultural Mortgage Cl C at the current share price and the inputted number of shares is $0.8 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Farmer Mac posts 2Q profit   [Aug-09-17 10:22PM  Associated Press]
▶ Farmer Mac posts 1Q profit   [May-10-17 08:50AM  Associated Press]
▶ The Many Facets Of Mae And Mac   [Apr-24-17 07:07AM  Benzinga]
▶ Farmer Mac posts 4Q profit   [08:32AM  Associated Press]
▶ Is NQ Mobile Inc (ADR) (NQ) A Good Stock To Buy?   [Nov-28  07:13AM  at Insider Monkey]
▶ Here is What Hedge Funds Think About The Bancorp, Inc. (TBBK)   [Nov-25  10:58AM  at Insider Monkey]
▶ Petco Fetches $4.6 Billion In Takeover Deal   [Nov-23  01:31PM  at Fortune]
Financial statements of AGM
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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