* Note: Prices are in Million (M) USD.
Description:
AGNC Investment Corp. The company is headquartered in Bethesda, Maryland.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $656 M
Debt : $90,518 M
EBITDA : $3,325 M
Net Debt (Debt - Cash): $89,862 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - residential
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 6.53
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 17 overlapping fiscal years (max 20).Average Free Cash Flow: $715 M
Average Revenue: $633 M
Revenue Converted To Free Cash Flow (%): 113.0%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $973 M
Revenue 4 Years Ago (2020-12-31): $-173 M
Last 5 Years Average Revenue Growth: 0%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $786 M
Share Count 5 Years Ago (2020-12-31): $552 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.55
Trailing 12-Month Earnings Per Share (EPS): $1.59
Average Earnings Per Share (EPS): $1.57
Dividend Per Share (DPS): $1
Payout Ratio: 92%
Dividend Yield: 14%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 17 valid ROE years (max 20).Average ROE: 6.9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $10
52-Week Low: $7
Threshold Price (15% Above 52-Week Low): $8
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,782 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above AGNC Investment Corp (AGNC) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 10 Years Avg P/E (7.36)
× EPS ($1.57) = $11.56.
Last 10 Years Avg PE
7.36, Fair Value PE
15, Industry Based PE
20, RCFC Based PE
50, ROE Based PE
6.93, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
19.48. Value-Trades has assined P/E value
7.36. An average (Current Year EPS + Next Year EPS) earning per share is
$1.57.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $30.59 (PE 19.48 × EPS $1.57)
Fair value using simple average PE × EPS: $11.56 (PE 7.36 × EPS $1.57)
Lesser of these two: $11.56
So the Final Fair Value is: $11.56
