Is AGNCM undervalued?

AlphaMadera's AlphaVal page computes AGNC Investment Corp.'s fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag AGNCM as undervalued, fairly valued, or overvalued.

What is AGNC Investment Corp.'s fair value?

Fair value for AGNCM is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value AGNCM?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from AGNCM's most recent reported fundamentals.

AGNCM - AGNC Investment Corp.

Price: -- -- | CONSENSUS: Buy DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Default REIT Multiple

Valuation Signal Undervalued Strong

Trading 75.7% below fair value

Current Price $25.01

Bear Case $85.27 240.9% upside ($85.27 - $25.01) / $25.01 = 240.9% $5.20 FFO × 18x

Fair Value $102.82 311.1% upside ($102.82 - $25.01) / $25.01 = 311.1% $5.20 FFO × 22x

Bull Case $120.37 381.3% upside ($120.37 - $25.01) / $25.01 = 381.3% $5.20 FFO × 26x

Adjust Assumptions

P/FFO Multiple

22.1x

FFO per Share

5.2$

Key Value Driver

FFO/share ($5.20) × default P/FFO multiple

Implied Market Multiple 4.8x

Plain-Language Summary

At $5.20 FFO/share with a 22x default REIT multiple, the base-case value is $102.82 per share. Dividend yield: 8.7%. DDM cross-check: $74.81.

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

⚠ Dividend yield of 8.7% is unusually high — make sure the company generates enough cash to keep paying it.

ℹ Dividend-based valuation: $74.81 (27% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify