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Federal Home Loan Mortgage Corp GP Pref (FREGP) fair value: what the stock is really worth

As of Sep 23, 2026: fair value of Federal Home Loan Mortgage Corp GP Pref $2.50, price $12.03, upside -79.2%, quality 53 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? Yes
  3. Add to watchlist

Financial Services · US · ISIN US3134008891

FH Federal Home Loan Mortgage Corp GP Pref logo Thin data Sep 24, 2026

Federal Home Loan Mortgage Corp GP Pref

FREGP · US

Stretched ValuationStrong overvaluation with only moderate quality.

!Fair value $2.50 · Strongly overvalued (−79%)
!Quality 53/100
!Mixed Growth (revenue 5y +6.9 %/yr)
✓Highly profitable · 52.6% net margin (TTM)
✓Negative equity (buybacks among others) · generates free cash flow
✓Ranks above peers (5/8)
!Moderate moat 64/100
!Evidence only low, so the estimate is less certain
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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 →

Price vs Fair Value

$26.55 $2.11 Fair Value $2.50 Jun 2015 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.

How to read this chart

60‑month range $2.11 – $26.55 · fair‑value band $1.31 – $3.13 · the $12.03 price screens above the $2.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.

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Company profile

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company operates through two segments: Single-Family and Multifamily.

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Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company operates through two segments: Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment also serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, HFAs, savings institutions, and non-depository institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It also serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, REITs, non-depository institutions, and brokers and dealers. Federal Home Loan Mortgage Corporation was incorporated in 1970 and is headquartered in McLean, Virginia.

Stock analysis

Federal Home Loan Mortgage Corp GP Pref (FREGP) currently trades at $12.03, while our model-based Fair Value estimate is $2.50, implying the stock looks roughly 381.2% overvalued today.

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Valuation

How firm this estimate is: it rests on 16 models at a data quality of 95/100, which puts the evidence level at low.

Scenario range: $1.31 (bear) to $3.13 (bull), the price of $12.03 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 53/100 (solid quality), in the Financial Services sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

Federal Home Loan Mortgage Corp GP Pref 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.

Key figures

Market cap $7.8B · P/E ratio 191.6 · P/S ratio 88.4 · EPS (TTM) $0.0680 · Net margin 46.1% · Return on equity 18.2% · Return on assets (EBIT) 0.3% · Operating margin 69.5%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 33 out of 100 (low confidence).

What moves the price

The share trades about 55% below its 52-week high and at its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at 17% fair-value upside, at −79%, FREGP screens richer than that median.

Fair Value models

Bear $1.31 Fair Value $2.50 Bull $3.13
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($0.0497 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
Graham-Dodd $22.65 $157.97 $221.69 63
P/E Multiple $32.48 $43.31 $54.13 63
Residual Income $21.64 $28.27 $76.23 62
All 6 models by family
Earnings-Based
Graham-Dodd $22.65 $157.97 $221.69 63
Lynch FV $59.56 $85.08 $110.60 61
Multiples
P/E Multiple $32.48 $43.31 $54.13 63
P/B Multiple $22.94 $30.59 $38.24 55
Asset-Based
NCAV (Graham) $10.92 $14.64 $21.85 54
Economic Profit
Residual Income $21.64 $28.27 $76.23 62

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Quality Score breakdown

Overall quality 53/100

Of which business quality 49 · Market factors (momentum, volatility) 15

Profitability 36
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 97
Earnings quality: real cash, not paper profit
Fin. Strength 0
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 35
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 82
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 77/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−2.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+92.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.9%
Start year 2020 (pandemic). Over 10 years: +5.0% a year
Revenue growth 11 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.7%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+7.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.9%
Dividend (yield on the price)0.0%
Profit margin 2017 to 2022 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.60% → −196%

FREGP screens 381% overvalued. Compare with Rocket Companies, Inc →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Mortgage Finance · 92 stocks

Beats the industry median on 5/8 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 53 · Above median
Fair Value upside −79% · Bottom 25%
Profitability
Return on equity (TTM) Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets 0% · Above median
Net margin (TTM) 53% · Above median
Operating margin (TTM) 69% · Above median
Growth and dividend
Revenue growth 34% · Top 25%
Balance sheet
Debt / equity Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.

Valuation Multiplesvs Mortgage Finance median · lower = cheaper

P/E (TTM) 191.6× · Priciest 25%
P/B Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/FCF 0.4× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 0
FUTURE (revenue growth)100 · sector 100
PAST (return on equity)0 · sector 43
HEALTH (low debt)0 · sector 25
DIVIDEND (yield)0 · sector 100

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

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

None of the checked exposures detected

Similar stocks

10 more Mortgage Finance stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
Rocket Companies, Inc RKT $12.74 $3.23 −75%
Federal National Mortgage Association FNMAS $8.25 $2.01 −76%
Bajaj Housing Finance Limited BAJAJHFL ₹83.52 ₹24.32 −71%
PennyMac Financial Services, Inc PFSI $66.96 $125.45 +87%
UWM Holdings UWMC $1.26 $0.2100 −83%
LIC Housing Finance Limited LICHSGFIN ₹572.50 ₹1,145 +100%
PNB Housing Finance Limited PNBHOUSING ₹1,139 ₹1,330 +17%
Aadhar Housing Finance Limited AADHARHFC ₹454.55 ₹584.64 +29%
Walker & Dunlop, Inc WD $38.32 $32.25 −16%
Aptus Value Housing Finance India Limited APTUS ₹251.33 ₹501.00 +99%

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Federal Home Loan Mortgage Corp GP Pref · Fair Value
$2.50 −381%Fair Value
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Cite: Fair Value Calculator (2026). "Federal Home Loan Mortgage Corp GP Pref Fair Value". https://www.fairvalue-calculator.com/stock/FREGP

Frequently asked questions

Is Federal Home Loan Mortgage Corp GP Pref (FREGP) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $2.50 versus a price of $12.03, about −79% upside (overvalued).
What is the fair value of FREGP?
Our model-based fair value for Federal Home Loan Mortgage Corp GP Pref is $2.50 (as of Sep 24, 2026), built from audited fundamentals. The current price: $12.03.
What is the quality score of FREGP?
Federal Home Loan Mortgage Corp GP Pref has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Our model-based price target is the fair value of $2.50 (as of Sep 24, 2026) from 6 valuation models. Cautious scenario $1.31, optimistic scenario $3.13. It is a calculation from audited fundamentals, not an analyst target.
What is the Federal Home Loan Mortgage Corp GP Pref stock forecast for 2026?
Our models put fair value at $2.50, about −79% upside versus a price of $12.03 (overvalued). Cautious scenario $1.31, optimistic scenario $3.13. The calculation is refreshed regularly with new filings.
What is the revenue of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Federal Home Loan Mortgage Corp GP Pref reported trailing-twelve-month revenue of about $24.6B (latest available figure, as of Sep 24, 2026).
What is the intrinsic value of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Federal Home Loan Mortgage Corp GP Pref it is $2.50 per share (as of Sep 24, 2026), against a price of $12.03. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Federal Home Loan Mortgage Corp GP Pref stock overvalued or undervalued in 2026?
As of Sep 24, 2026, FREGP trades above its calculated fair value: price $12.03, fair value $2.50, a gap of about −79% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FREGP?
No. The price is what the market pays today ($12.03); the fair value is what the company's own numbers justify ($2.50). For Federal Home Loan Mortgage Corp GP Pref the two are $9.53 per share apart. That gap is exactly why we show both numbers side by side.
How much is Federal Home Loan Mortgage Corp GP Pref worth?
The market values Federal Home Loan Mortgage Corp GP Pref at about $7.8B (market capitalisation, as of Sep 24, 2026). Per share that is $12.03; our models calculate a fair value of $2.50 per share.
What do the bullish and bearish scenarios say about FREGP?
Our models span a range for Federal Home Loan Mortgage Corp GP Pref: cautious scenario $1.31, base $2.50, optimistic $3.13 per share (as of Sep 24, 2026, price $12.03). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FREGP?
Federal Home Loan Mortgage Corp GP Pref trades at a price-to-earnings ratio of 191.6 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $2.50 is built from several models across several years.
How solid is the balance sheet of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Balance-sheet figures for Federal Home Loan Mortgage Corp GP Pref (as of Sep 24, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is FREGP from its 52-week high?
Federal Home Loan Mortgage Corp GP Pref trades at $12.03, about 55% below its 52-week high of $26.55 and at the low of $12.03 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $2.50 is for.
Which stocks are comparable to Federal Home Loan Mortgage Corp GP Pref?
From the same area (Financial Services) we also value Rocket Companies, Inc, Federal National Mortgage Association, Bajaj Housing Finance Limited, PennyMac Financial Services, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Federal Home Loan Mortgage Corp GP Pref stock attractive at the current price?
The data as of Sep 24, 2026: price $12.03, calculated fair value $2.50 (−79%), Quality Score 53/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FREGP calculated?
We run Federal Home Loan Mortgage Corp GP Pref through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $2.50, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Federal Home Loan Mortgage Corp GP Pref itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
The closing price on Sep 23, 2026 was $12.03. Our model-based fair value is $2.50, about −79% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Federal Home Loan Mortgage Corp GP Pref right now?
The price sits above even our optimistic bull case ($3.13). The favourable scenario is already priced in. 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 but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($1.31 to $3.13) leaves room in how you read the outcome.

Key figures of Federal Home Loan Mortgage Corp GP Pref

How large is the market capitalisation of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
The market capitalisation of Federal Home Loan Mortgage Corp GP Pref is $7.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
The price-to-sales ratio of Federal Home Loan Mortgage Corp GP Pref is 88.4 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Earnings per share at Federal Home Loan Mortgage Corp GP Pref are $0.0680 (price ÷ EPS = P/E 191.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
The net margin of Federal Home Loan Mortgage Corp GP Pref is 46.1% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
The return on equity (ROE) of Federal Home Loan Mortgage Corp GP Pref is 18.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
On an EBIT basis the return on assets of Federal Home Loan Mortgage Corp GP Pref is 0.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Federal Home Loan Mortgage Corp GP Pref (FREGP)?
The operating margin of Federal Home Loan Mortgage Corp GP Pref is 69.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Revenue at Federal Home Loan Mortgage Corp GP Pref is growing +33.9% versus a year earlier (3y avg +92.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Federal Home Loan Mortgage Corp GP Pref (FREGP)?
Earnings per share at Federal Home Loan Mortgage Corp GP Pref are growing −90.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Federal Home Loan Mortgage Corp GP Pref (FREGP) generate?
The free cash flow of Federal Home Loan Mortgage Corp GP Pref is $19.4B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Federal Home Loan Mortgage Corp GP Pref (FREGP) carry?
The net debt of Federal Home Loan Mortgage Corp GP Pref is $3.4T (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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