Affiliated Managers Group (AMG): Exploring Valuation After Strong Q3 Results and Earnings Growth

Affiliated Managers Group (AMG) just posted its third-quarter results, delivering a clear boost in both sales and net income compared to the same period last year. The numbers also show solid growth in earnings per share, signaling operational strength for investors considering their next move.

See our latest analysis for Affiliated Managers Group.

AMG’s stellar quarterly update comes on the back of steady momentum. After some strategic moves and portfolio refinements this year, the share price is up 27.3% year-to-date. Long-term investors have been rewarded even more handsomely, with a 34.4% one-year total shareholder return underscoring building confidence around growth and capital discipline.

If you’re eager to see what else is gaining investor traction, now’s a great time to broaden your horizons and explore fast growing stocks with high insider ownership

With such strong financial growth and positive analyst revisions fueling recent momentum, the question is whether AMG shares remain undervalued or if the market has already priced in these bright prospects. This could leave little room for new buyers to benefit.

Most Popular Narrative: 17.6% Undervalued

Affiliated Managers Group’s most widely followed bull case narrative points to a fair value meaningfully above its last close, suggesting the market might not be capturing the company’s projected trajectory just yet.

With record-breaking inflows and rapid expansion in alternative assets, AMG increased alternative AUM by 20% in six months and reported its strongest organic growth quarter in 12 years. This positions the company to benefit from persistent global demand for yield, diversification, and differentiated strategies, directly supporting top-line revenue and future net margin improvement due to higher fee structures in alternatives.

Read the complete narrative.

Want to know what’s behind the narrative’s bullish math? There’s a future profit engine tied to alternatives growth, margin expansion, and deep buybacks. The real surprise? The specific profit multiple and the ambitious step-up in earnings that underpin the bullish fair value calculation. Ready to see the full formula?

Result: Fair Value of $288.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, AMG’s heavy reliance on key affiliates and the ongoing shift toward passive investments could challenge the company’s growth story if market conditions change.

Find out about the key risks to this Affiliated Managers Group narrative.

Another View: Peeling Back the Multiples

While one approach highlights strong upside versus the latest price, another metric offers a reality check. AMG is trading at 15.3 times earnings, which is cheaper than its industry's 24 times and its peer average of 16.5, but still a bit higher than its own fair ratio of 14.5. This means the shares, although looking attractive next to the broader industry, might not present significant bargain territory when compared with the level the market could revert to. Are investors being overly optimistic, or is the premium justified?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Affiliated Managers Group Narrative

If you see things differently or want a closer look at the numbers yourself, it takes just a few minutes to shape your own perspective, your way Do it your way.

A great starting point for your Affiliated Managers Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Don’t limit your opportunities to just one company. Investing smart means knowing where to find the best stories in the market and staying ahead of trends. Get started now and never miss tomorrow’s winners.

• Tap into income potential and stability by checking out these 20 dividend stocks with yields > 3%, which consistently deliver yields over 3% to shareholders.
• Ride the artificial intelligence wave by reviewing these 27 AI penny stocks, leading innovation in automation, machine learning, and future tech growth.
• Capitalize on bargain opportunities with these 839 undervalued stocks based on cash flows, generating strong cash flows that the market may be overlooking.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com