Is Assured Guaranty Ltd. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Assured Guaranty Ltd. moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 9, a Price to Book Value of 0.75, and an EV to Capital Employed ratio of 0.77, which suggest that the stock is reasonably priced compared to its assets and earnings potential.
In comparison to peers, Assured Guaranty Ltd. has a P/E ratio of 7.78, while Old Republic International Corp. stands at 11.21, indicating that Assured is trading at a discount relative to this competitor. Additionally, Essent Group Ltd. has a P/E of 8.80, further supporting the notion that Assured is fairly valued within its industry context. While Assured Guaranty has underperformed the S&P 500 year-to-date with a return of -7.75% compared to the index's 12.22%, its long-term performance over five years shows a substantial gain of 335.40%, which may reflect its potential for recovery and growth.