Assured Guaranty - Comparative Multiple Analysis

Assured Guaranty (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Assured Guaranty

WikiWealth compares Assured Guaranty's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Assured Guaranty's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Assured Guaranty.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Assured Guaranty's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Assured Guaranty's Analysis

How does this work? The Comparative Investment Analysis determines the value of Assured Guaranty by comparing Assured Guaranty financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Assured Guaranty.

See the Assured Guaranty cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Assured Guaranty.

Also, see the Assured Guaranty's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Assured Guaranty's valuation conclusion for a quick summary.