Assured Guaranty Price To Earning vs. Current Valuation
| DHU Stock | EUR 83.50 0.50 0.60% |
For Assured Guaranty profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Assured Guaranty to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Assured Guaranty utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Assured Guaranty's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Assured Guaranty over time as well as its relative position and ranking within its peers.
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Assured Guaranty Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Assured Guaranty's current stock value. Our valuation model uses many indicators to compare Assured Guaranty value to that of its competitors to determine the firm's financial worth. Assured Guaranty is one of the top stocks in price to earning category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 452,998,100 of Current Valuation per Price To Earning. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Assured Guaranty's earnings, one of the primary drivers of an investment's value.Assured Current Valuation vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Assured Guaranty |
| = | 10.92 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Assured Guaranty |
| = | 4.95 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Assured Current Valuation vs Competition
Assured Guaranty is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Insurance - Specialty industry is currently estimated at about 49.62 Billion. Assured Guaranty holds roughly 4.95 Billion in current valuation claiming about 10% of equities under Insurance - Specialty industry.
Assured Guaranty Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Assured Guaranty, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Assured Guaranty will eventually generate negative long term returns. The profitability progress is the general direction of Assured Guaranty's change in net profit over the period of time. It can combine multiple indicators of Assured Guaranty, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company was founded in 2003 and is headquartered in Hamilton, Bermuda. ASSURED GUARANTY operates under Insurance - Specialty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 312 people.
Assured Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Assured Guaranty. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Assured Guaranty position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Assured Guaranty's important profitability drivers and their relationship over time.
Use Assured Guaranty in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Assured Guaranty position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Assured Guaranty will appreciate offsetting losses from the drop in the long position's value.Assured Guaranty Pair Trading
Assured Guaranty Pair Trading Analysis
The ability to find closely correlated positions to Assured Guaranty could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Assured Guaranty when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Assured Guaranty - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Assured Guaranty to buy it.
The correlation of Assured Guaranty is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Assured Guaranty moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Assured Guaranty moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Assured Guaranty can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Assured Guaranty position
In addition to having Assured Guaranty in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Assured Stock
When determining whether Assured Guaranty offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Assured Guaranty's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Assured Guaranty Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Assured Guaranty Stock:Check out Investing Opportunities. For more detail on how to invest in Assured Stock please use our How to Invest in Assured Guaranty guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Assured Guaranty's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Assured Guaranty at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Assured Guaranty's income statement, its balance sheet, and the statement of cash flows.