American International Group Valuation

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

AIG ($61.04) is trading above our estimate of [[fair value]] ($26.57)

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

Valuation Score

2/6

Valuation Score 2/6

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 AIG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AIG ($61.04) is trading above our estimate of fair value ($26.57)

Significantly Below Fair Value: AIG is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AIG. This is calculated by dividing AIG's market cap by their current earnings.
What is AIG's PE Ratio?
PE Ratio	3.7x
Earnings	US$10.25b
Market Cap	US$37.48b

AIG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	3.1x
PEG Ratio	-0.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	10.6x
MAPFSGC1 Mapfre Perú Compañía de Seguros y Reaseguros	28.4x	n/a	S/5.5b
RIMSEGC1 RIMAC Seguros y Reaseguros	4.2x	n/a	S/1.9b
POSITIC1 La Positiva Seguros y Reaseguros	2.1x	n/a	S/462.6m
601601 China Pacific Insurance (Group)	7.6x	-4.3%	CN¥291.4b
AIG American International Group	3.7x	-11.0%	US$37.5b

Price-To-Earnings vs Peers: AIG is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does AIG's PE Ratio compare vs other companies in the South American Insurance Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AIG is good value based on its Price-To-Earnings Ratio (3.7x) compared to the South American Insurance industry average (9.2x).

Price to Earnings Ratio vs Fair Ratio

What is AIG'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.

AIG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AIG's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.