The fair value of Assured Guaranty Ltd (AGO) is $92.23. The current price ($86.25) indicates stock is undervalued by 6.93%.
* Note: Prices are in Million (M) USD.
Description:
Assured Guaranty Ltd., provides credit protection products to the public finance, infrastructure and structured finance markets in the United States and internationally. The company is headquartered in Hamilton, Bermuda.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,490 M
Debt : $1,780 M
EBITDA : $552 M
Net Debt (Debt - Cash): $290 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Financial Services
Industry: Insurance - Specialty
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: 11.53
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:
Average Free Cash Flow: $-81 M
Average Revenue: $1,027 M
Free Cash Flow to Revenue : -8 %
Since Free Cash Flow (FCF) to Revenue percentage is negative, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $814 M
Revenue 4 Years Ago (2020-12-31): $1,084 M
Last 5 Years Average Revenue Growth: -5%
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): $54 M
Share Count 5 Years Ago (2020-12-31): $86 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $7.48
Dividend Per Share (DPS): $1
Payout Ratio: 17%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 8%
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: $86
52-Week Low: $72
Threshold Price (15% Above 52-Week Low): $83
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: $4,370 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Assured Guaranty Ltd (AGO) stock.
Twenty Years Avg PE 9, Fair Value PE 15 and Industry Based PE is 13. Based on these three values average assigned is 12.33.
Value-Trades has assined P/E value 12.33. Since current year earning per share is $7.48.
The fair value of Assured Guaranty Ltd (AGO) stock should be (12.33 x $7.48) = $92.23
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