Insurance Australia Group Limited

CHIA:IAG Stock Report

Market Cap: AU$19.6b

Insurance Australia Group Valuation

Is IAG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IAG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IAG (A$8.31) is trading below our estimate of fair value (A$11.67)

Significantly Below Fair Value: IAG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IAG?

Key metric: As IAG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IAG. This is calculated by dividing IAG's market cap by their current earnings.
What is IAG's PE Ratio?
PE Ratio21.8x
EarningsAU$898.00m
Market CapAU$19.57b

Price to Earnings Ratio vs Peers

How does IAG's PE Ratio compare to its peers?

The above table shows the PE ratio for IAG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
QBE QBE Insurance Group
10.5x1.4%AU$28.8b
SUN Suncorp Group
25.3x4.4%AU$23.8b
SDF Steadfast Group
28.2x11.0%AU$6.4b
AUB AUB Group
26.1x11.1%AU$3.6b
IAG Insurance Australia Group
21.8x7.4%AU$19.6b

Price-To-Earnings vs Peers: IAG is good value based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does IAG's PE Ratio compare vs other companies in the Global Insurance Industry?

14 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IAG 21.8xIndustry Avg. 11.1xNo. of Companies73PE0816243240+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IAG is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the Global Insurance industry average (11.1x).

Price to Earnings Ratio vs Fair Ratio

What is IAG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IAG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.8x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: IAG is good value based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IAG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$8.31
AU$8.27
-0.4%
9.9%AU$9.55AU$6.70n/a13
Dec ’25AU$8.49
AU$7.95
-6.3%
9.6%AU$9.50AU$6.70n/a13
Nov ’25AU$7.37
AU$7.55
+2.5%
7.8%AU$8.40AU$6.30n/a12
Oct ’25AU$7.27
AU$7.43
+2.2%
7.5%AU$8.25AU$6.30n/a12
Sep ’25AU$7.55
AU$7.30
-3.3%
9.1%AU$8.25AU$6.15n/a13
Aug ’25AU$7.44
AU$7.17
-3.6%
9.6%AU$8.10AU$6.00n/a13
Jul ’25AU$7.11
AU$6.91
-2.8%
10.1%AU$8.10AU$6.00n/a13
Jun ’25AU$6.20
AU$6.38
+2.9%
6.8%AU$7.20AU$5.45n/a14
May ’25AU$6.42
AU$6.36
-1.0%
7.2%AU$7.20AU$5.45n/a14
Apr ’25AU$6.41
AU$6.23
-2.8%
6.2%AU$6.95AU$5.45n/a14
Mar ’25AU$6.17
AU$6.15
-0.3%
5.5%AU$6.75AU$5.45n/a14
Feb ’25AU$6.05
AU$6.05
0%
5.6%AU$6.60AU$5.50n/a13
Jan ’25AU$5.65
AU$6.03
+6.7%
5.1%AU$6.50AU$5.45n/a13
Dec ’24AU$5.93
AU$5.90
-0.6%
7.5%AU$6.50AU$5.09AU$8.4914
Nov ’24AU$5.73
AU$5.90
+3.0%
7.5%AU$6.50AU$5.09AU$7.3714
Oct ’24AU$5.69
AU$5.89
+3.6%
7.5%AU$6.50AU$5.09AU$7.2714
Sep ’24AU$5.81
AU$5.88
+1.1%
7.4%AU$6.50AU$5.09AU$7.5514
Aug ’24AU$5.95
AU$5.68
-4.5%
7.3%AU$6.25AU$4.80AU$7.4414
Jul ’24AU$5.71
AU$5.43
-5.0%
7.1%AU$6.05AU$4.70AU$7.1114
Jun ’24AU$5.19
AU$5.29
+2.1%
7.4%AU$5.75AU$4.30AU$6.2015
May ’24AU$5.02
AU$5.24
+4.4%
7.8%AU$5.75AU$4.30AU$6.4213
Apr ’24AU$4.69
AU$5.19
+10.6%
7.5%AU$5.72AU$4.30AU$6.4113
Mar ’24AU$4.67
AU$5.19
+11.1%
7.5%AU$5.72AU$4.30AU$6.1713
Feb ’24AU$4.90
AU$5.38
+9.8%
8.0%AU$6.03AU$4.40AU$6.0513
Jan ’24AU$4.76
AU$5.27
+10.8%
10.2%AU$6.00AU$4.20AU$5.6512
Dec ’23AU$4.79
AU$5.30
+10.6%
10.5%AU$6.00AU$4.20AU$5.9311

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 11:34
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Insurance Australia Group Limited is covered by 27 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett Le MesurierAxiome Equities
Benjamin BrayshawBarrenjoey Markets Pty Limited
Andrew AdamsBarrenjoey Markets Pty Limited