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Federal Home Loan Mortgage (LTS:0IKZ) Cyclically Adjusted PB Ratio : (As of Jun. 07, 2024)


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What is Federal Home Loan Mortgage Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Federal Home Loan Mortgage Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Federal Home Loan Mortgage Cyclically Adjusted PB Ratio Chart

Federal Home Loan Mortgage Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
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Federal Home Loan Mortgage Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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Competitive Comparison of Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio

For the Mortgage Finance subindustry, Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio falls into.



Federal Home Loan Mortgage Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Federal Home Loan Mortgage's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Federal Home Loan Mortgage's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-55.832/131.7762*131.7762
=-55.832

Current CPI (Mar. 2024) = 131.7762.

Federal Home Loan Mortgage Quarterly Data

Book Value per Share CPI Adj_Book
201406 -126.385 100.560 -165.619
201409 -125.006 100.428 -164.026
201412 -128.905 99.070 -171.461
201503 -129.066 99.621 -170.725
201506 -124.194 100.684 -162.546
201509 -130.985 100.392 -171.934
201512 -128.460 99.792 -169.632
201603 -131.444 100.470 -172.401
201606 -129.701 101.688 -168.078
201609 -127.583 101.861 -165.052
201612 -125.176 101.863 -161.936
201703 -128.621 102.862 -164.776
201706 -129.003 103.349 -164.486
201709 -124.905 104.136 -158.058
201712 -133.461 104.011 -169.088
201803 -130.154 105.290 -162.896
201806 -126.407 106.317 -156.677
201809 -124.909 106.507 -154.545
201812 -126.573 105.998 -157.355
201903 -126.284 107.251 -155.162
201906 -126.036 108.070 -153.684
201909 -123.193 108.329 -149.857
201912 -119.428 108.420 -145.155
202003 -118.840 108.902 -143.802
202006 -115.859 108.767 -140.368
202009 -112.091 109.815 -134.507
202012 -108.212 109.897 -129.756
202103 -104.553 111.754 -123.285
202106 -98.999 114.631 -113.806
202109 -94.524 115.734 -107.626
202112 -90.336 117.630 -101.200
202203 -84.678 121.301 -91.991
202206 -81.006 125.017 -85.386
202209 -79.265 125.227 -83.411
202212 -76.514 125.222 -80.519
202303 -73.362 127.348 -75.913
202306 -68.917 128.729 -70.549
202309 -64.757 129.860 -65.713
202312 -60.048 129.419 -61.142
202403 -55.832 131.776 -55.832

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Federal Home Loan Mortgage  (LTS:0IKZ) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Federal Home Loan Mortgage Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Federal Home Loan Mortgage's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Federal Home Loan Mortgage (LTS:0IKZ) Business Description

Address
8200 Jones Branch Drive, McLean, VA, USA, 22102-3110
Federal Home Loan Mortgage Corp is a US based government-sponsored enterprise. The company invests in mortgage loans and mortgage-related securities. It operates in the following segments: Single-family, Multifamily. The company is engaged in originating, purchase, and guarantee single-family loans originated by its seller. It provides a guarantee and security for the payment of principal and interest on the mortgage-related securities in exchange for management and guarantee fees. The company purchases multifamily loans for aggregation and then securitization through the issuance of multifamily K Certificates as well as issues and guarantees other securitization products. Majority of the revenue is earned from single family.

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