The fair value of Assured Guaranty Ltd (AGO) is $112.2. The current price ($89.12) indicates stock is undervalued by 25.90%.
* Note: Prices are in Million (M) USD.
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: 11.91
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: $89
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.
Value-Trades has assined P/E value 15. Since current year earning per share is $7.48.
The fair value of Assured Guaranty Ltd (AGO) stock should be (15 x $7.48) = $112.2
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