Western Asset Premier Bond Fund

OVERVALUEDWEA · NYSE · Financial Services
WEA·NYSE·Financial Services
OVERVALUED
Western Asset Premier Bond Fund
26.8%downside
MARKET PRICE
$10.65
FAIR PRICE
$7.80
MARGIN
$2.85
UNDERVALUEDFAIROVERVALUED
P/E RATIO
6.2x
DIV. YIELD
9.26%
ROE
15.1%
MARKET CAP
$126M
FPI
fairpriceindex.com

FAIR PRICE VALUATION

26.8%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$10.65

FAIR PRICE

$7.80

MARGIN

$2.85

UNDERVALUEDFAIROVERVALUED

P/E Ratio

6.2x

What is P/E? →

Div. Yield

9.26%

ROE

15.1%

Strong

Market Cap

$126M

Small-cap

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FPI RATING

5.1/ 10

Strong profitability and high-quality fundamentals, but elevated debt levels and volatile earnings pattern.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$6.24CONSERVATIVE ENTRY
$7.80FAIR PRICE
$10.65MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$6.24

Fair price × 0.80

DISTANCE

41.4%

Price to entry level

At the current price of $10.65, WEA trades 41.4% above the conservative entry level of $6.24. This entry level represents a 20% margin of safety below the calculated fair price of $7.80 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate WEA's fair price

Western Asset Premier Bond Fund's fair price of $7.80 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $10.65, WEA trades 26.8% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting WEA's risk profile.

RELATIVE · 30%

Comparing WEA's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for WEA, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate WEA's fair value with your own inputs.

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FAQ

What is the fair price of WEA?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for Western Asset Premier Bond Fund is $7.80. At the current market price of $10.65, WEA trades 26.8% above its calculated fair value.

Is WEA overvalued or undervalued?+

Western Asset Premier Bond Fund is currently overvalued based on our valuation model. The stock trades at $10.65, which is 26.8% above the fair price of $7.80. The P/E ratio of 6.2x is a key metric in the valuation.

What is the margin of safety for WEA?+

With a 20% margin of safety applied to the fair price of $7.80, the conservative entry level for WEA is $6.24. At the current market price of $10.65, the stock trades 41.4% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is WEA's fair price updated?+

We update fair price calculations for WEA daily after market close. The current fair price of $7.80 incorporates the latest market data and sector multiples.

What factors affect WEA's fair price calculation?+

WEA's fair price of $7.80 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 6.2x, ROE of 15.1%, and dividend yield of 9.26%.

Is WEA a good buy right now?+

At $10.65, WEA trades 26.8% above our fair value estimate of $7.80. The stock is currently overvalued. ROE stands at 15.1% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does WEA pay dividends?+

WEA has a dividend yield of 9.26%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.