Ambac Financial Valuation
| AMBC Stock | USD 12.82 0.27 2.15% |
At this time, the firm appears to be undervalued. Ambac Financial Group shows a prevailing Real Value of $14.57 per share. The current price of the firm is $12.82. Our model approximates the value of Ambac Financial Group from analyzing the firm fundamentals such as profit margin of (0.06) %, and Return On Equity of -0.0149 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ambac Financial's valuation include:
Price Book 0.4064 | Enterprise Value 4.2 B | Price Sales 1.496 | Forward PE 12.4224 | Enterprise Value Revenue 10.6533 |
Undervalued
Today
Please note that Ambac Financial's price fluctuation is not too volatile at this time. Calculation of the real value of Ambac Financial Group is based on 3 months time horizon. Increasing Ambac Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Ambac Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ambac Stock. However, Ambac Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 12.82 | Real 14.57 | Target 17.0 | Hype 12.52 | Naive 12.77 |
The real value of Ambac Stock, also known as its intrinsic value, is the underlying worth of Ambac Financial Group Company, which is reflected in its stock price. It is based on Ambac Financial's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Ambac Financial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Ambac Financial Group helps investors to forecast how Ambac stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ambac Financial more accurately as focusing exclusively on Ambac Financial's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ambac Financial's intrinsic value based on its ongoing forecasts of Ambac Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ambac Financial's closest peers. If more than one evaluation category is relevant for Ambac Financial we suggest using both methods to arrive at a better estimate.
Ambac Financial Cash |
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Ambac Valuation Trend
Comparing Ambac Financial's enterprise value against its market capitalization is a good way to estimate the value of Ambac Financial Group uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Ambac Financial Total Value Analysis
Ambac Financial Group is presently forecasted to have valuation of 4.2 B with market capitalization of 595.41 M, debt of 3.5 B, and cash on hands of 525 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ambac Financial fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.2 B | 595.41 M | 3.5 B | 525 M |
Ambac Financial Investor Information
About 88.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.41. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ambac Financial Group has Price/Earnings To Growth (PEG) ratio of 0.9. The entity recorded a loss per share of 0.47. The firm had not issued any dividends in recent years. Based on the analysis of Ambac Financial's profitability, liquidity, and operating efficiency, Ambac Financial Group is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.Ambac Financial Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Ambac indicates not a very effective usage of assets in November.Ambac Financial Ownership Allocation
Ambac Financial holds a total of 47.44 Million outstanding shares. The majority of Ambac Financial Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Ambac Financial Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Ambac Financial. Please pay attention to any change in the institutional holdings of Ambac Financial Group as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Ambac Financial Profitability Analysis
The company reported the previous year's revenue of 269 M. Net Income was 8 M with profit before overhead, payroll, taxes, and interest of 674 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ambac Financial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ambac Financial and how it compares across the competition.
About Ambac Financial Valuation
The stock valuation mechanism determines Ambac Financial's current worth on a weekly basis. Our valuation model uses a comparative analysis of Ambac Financial. We calculate exposure to Ambac Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Ambac Financial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 268 M | 190.9 M | |
| Pretax Profit Margin | 0.04 | 0.04 | |
| Operating Profit Margin | 0.42 | 0.40 | |
| Net Profit Margin | 0.01 | 0.01 | |
| Gross Profit Margin | 1.15 | 1.36 |
Ambac Financial Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 46.5 M | |
| Quarterly Earnings Growth Y O Y | -0.81 | |
| Forward Price Earnings | 12.4224 |
Ambac Financial Current Valuation Indicators
Valuation refers to the process of determining the present value of Ambac Financial Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ambac we look at many different elements of the entity such as Ambac's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ambac Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ambac Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ambac Financial's worth.Complementary Tools for Ambac Stock analysis
When running Ambac Financial's price analysis, check to measure Ambac Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ambac Financial is operating at the current time. Most of Ambac Financial's value examination focuses on studying past and present price action to predict the probability of Ambac Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ambac Financial's price. Additionally, you may evaluate how the addition of Ambac Financial to your portfolios can decrease your overall portfolio volatility.
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