Federal Home Loan Mortgage Corp Pref 5 (FMCKK) Fair Value & Analysis

Financials · US · Market cap $44.8B · ISIN US3134008636

What is Federal Home Loan Mortgage Corp Pref 5 really worth?

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

• The price is below even our cautious bear case ($19.50). The market is more pessimistic than our downside scenario.
• The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
• Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 17, 2026.

How to read this chart

60‑month range $2.24 – $25.00 · fair‑value band $19.50 – $32.50 · the $13.00 price screens below the $26.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 17, 2026.

Full chart & analysis →

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Analysis

Federal Home Loan Mortgage Corp Pref 5 (FMCKK) currently trades at $13.00, while our model-based Fair Value estimate is $26.00, implying the stock looks roughly 50.0% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Financials sector. Bull case: the Multiples group reads highest at a median of $28.61 per share, and 4 of the 4 models we run sit above the $13.00 price. Bear case: the Asset-Based group reads lowest at $13.69, and 0 of the 4 models stay below the price. Evidence for this calculation is low.

Net debt stands at $3.4T. Fundamentals as of Aug 17, 2026

Our scenario range runs from $19.50 (bear case) to $32.50 (bull case); at $13.00, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 49% below its 52-week high, currently below its 200-day average. For context, the median of 10 Financials peers we cover trades at 73% fair-value upside, at 100%, FMCKK screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Widest divergence: Multiples ($28.61) versus Asset-Based ($13.69). Highest evidence: Residual Income (66).

Key figures & financial health

Quality Score breakdown

About the company

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company purchases residential mortgage loans originated by lenders, as well as invests in mortgage loans and mortgage-related securities. It operates in three segments: Single-family Guarantee, Multifamily, and Capital Markets.

Full company description

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company purchases residential mortgage loans originated by lenders, as well as invests in mortgage loans and mortgage-related securities. It operates in three segments: Single-family Guarantee, Multifamily, and Capital Markets. The Single-family Guarantee segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit risk. This segment serves lenders, including mortgage banking companies, commercial banks, community banks, regional banks, credit unions, housing finance agencies, savings institutions, and other non-depository financial institutions. The Multifamily segment engages in the purchase, sale, securitization, and guarantee activities in multifamily loans and securities through the issuance of multifamily K and SB certificates; issuing and guarantying other securitization products; issuing other credit risk transfer products; and provision of other mortgage-related guarantees, as well as post-construction financing to apartment project operators. The Capital Markets segment invests principally in mortgage-related securities and single-family performing loans. This segment serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts, brokers and dealers, and lenders. Federal Home Loan Mortgage Corporation was founded in 1970 and is headquartered in McLean, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Federal Home Loan Mortgage Corp Pref 5 reported revenue of $23.3B in FY2025 versus $4.4B in FY2021, a compound +51.9%/yr. Reported net income was $10.7B in FY2025, compounding −3.0%/yr from FY2021.

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Peer Group

Financials · 3318 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Banking Services” was too small, so the broader sector is used.)

Valuation Multiples vs Financials median · lower = cheaper

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

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