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Assured Guaranty trades deeply undervalued; path to re-rating depends on achieving 10% ROE.

Analyst Insights
27 Sep 2026
Seeking Alpha
View Source
Bullish
Assured Guaranty trades deeply undervalued; path to re-rating depends on achieving 10% ROE.

Assured Guaranty (AGO) is currently trading at a significant discount, valued at 0.53 times its adjusted operating equity and 0.37 times its adjusted book value. The market expects a sustainable return on equity (ROE) of about 6%, but the company aims to reach a 10% ROE to trigger a re-rating, with each percentage point of ROE increase potentially adding around $16 per share in value. While share buybacks remain beneficial given current discounts, AGO is increasingly focusing capital on growth strategies such as annuity reinsurance. Maintaining its AA credit rating is crucial for new business opportunities and capital flexibility. The article emphasizes the importance of setting a clear ROE target and public accountability to support this goal.

Assured Guaranty is the story's subject, here is Pluang's market snapshot as of Sep 27, 2026 21:02 WIB: Among 85 priced Financials-sector US stocks, 57 rose and 28 fell. Notable movers include Nomura Holdings Inc at USD 10.06 with a +2.97% change and a typical hold time of 54 days, Marathon Digital Holdings Inc at USD 12.55 down -2.86% with a 21-day hold, and Deutsche Bank AG at USD 36.57 up +2.67%, with 0% Sell and 100% Buy order activity and a 79-day typical hold time.

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