ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Assured Guaranty's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.88%.
As of today (2026-06-24), Assured Guaranty's WACC % is 6.73%. Assured Guaranty's ROC % is 4.38% (calculated using TTM income statement data).
Assured Guaranty earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Assured Guaranty (NYSE:AGO) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Assured Guaranty's WACC % is 6.73%. Assured Guaranty's ROC % is 4.38% (calculated using TTM income statement data).
Assured Guaranty earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Assured Guaranty ROC % Related Terms
Assured Guaranty ROC % Historical Data
* Premium members only.
The historical data trend for Assured Guaranty's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Assured Guaranty (AGO) has a ROC % of 2.88% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Assured Guaranty and its competitors.
Is Assured Guaranty's ROC % too high?
Assured Guaranty's current ROC % is 2.88%. The Insurance industry median ROC % is 3.37. Assured Guaranty's value of 2.88% is 14.4% below this industry median. Overall, Assured Guaranty has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Assured Guaranty's ROC % compare to NMIH and RYAN?
Assured Guaranty's ROC % of 2.88% can be compared against companies in the Insurance industry. The industry median ROC % is 3.37. Assured Guaranty's value of 2.88% is 14.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.37, based on 370 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Assured Guaranty's current ROC % of 2.88% is 14.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Assured Guaranty and its competitors. For the Insurance industry, the median ROC % is 3.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Assured Guaranty's current ROC % is 2.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Assured Guaranty stock overvalued right now?
Based on GuruFocus' analysis, Assured Guaranty (AGO) is currently considered Modestly Undervalued. The stock's GF Value™ is $94.73, compared to a current price of $78.41 — trading 17.2% below its estimated fair value. The current ROC % is 2.88% and 14.4% below the Insurance industry median of 3.37. Assured Guaranty's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Assured Guaranty (AGO), the current ROC % is 2.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Assured Guaranty (AGO) Overvalued in 2026?
Based on GuruFocus' analysis, Assured Guaranty stock appears to be undervalued.
The current stock price of $78.41 is trading 17.2% below its estimated GF Value™ of $94.73.
GuruFocus considers Assured Guaranty to be Modestly Undervalued.
Key valuation signals for AGO:
ROC %: 2.88%
GF Value™: $94.73 vs. price of $78.41 (17.2% below fair value)
Industry Position: 14.4% below the Insurance median
No single metric tells the full story. See the AGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Assured Guaranty Ltd. provides credit protection products to the United States and international public finance and structured finance markets and manages assets across collateralized loan obligations as well as opportunity funds and liquid funds that build on its corporate credit, asset-based finance, municipal, and healthcare experience. The company operates in two segments: the Insurance segment and the Asset Management segment. The majority of the revenue earned by the company is from the Insurance segment.
69GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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