AGF must sell itself - shares likely worth 100% more Per TD October 18, 2021 report, average EV/ 2022 Ebitda Estimates for 4 other firms (CIX, IGM, Sprott, Fiera) is 8.2 times.
AGF is only 3.6 times, a 56% discount to the 4 others' average.
If AGF is valued at just the 8.2 average, shares would more than double.
However, the 8.2 average represents the stock market's current valuation, not the valuation if the other 4 were to be taken over themselves. A privitzation multiple may be 10 to 12 times, perhaps more.
So very arguablly, AGF is worth much more than double its current trading price.
The 20 year chart suggests that AGF's board of directors has been unable to create shareholder value. So, AGF should sell itself to realize the significant underlying value that is there now.
There should be lots of possible buyers - BMO, BNS, CIX, CM, RY, TD, MFC, SLF etc. and maybe even GCG.A to enable it to scale up.
An offer that allows AGF shareholder to take cash or shares (to defer their capital gains) would be optimal.
AGF total AUM as at Nov 30, 2021 was up 11.9% over that of Nov 2020. Any concerns that potential bidders may have had in the past about AGF's declining AUM no longer apply.
The time has come.