American International Group Valuation

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

AIG.PRA ($24.99) is trading below our estimate of [[fair value]] ($45.83)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: AIG.PRA ($24.99) is trading below our estimate of fair value ($45.83)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AIG.PRA. This is calculated by dividing AIG.PRA's market cap by their current earnings.
What is AIG.PRA's PE Ratio?
PE Ratio	14.4x
Earnings	US$3.61b
Market Cap	US$51.65b

AIG.PRA 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	1.7x
Enterprise Value/EBITDA	8.8x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AIG.PRA 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	15.1x
HMN Horace Mann Educators	16.4x	23.1%	US$1.7b
ALL Allstate	13.4x	4.8%	US$55.0b
TRV Travelers Companies	13.4x	2.8%	US$59.9b
MET MetLife	17.2x	13.3%	US$60.8b
AIG.PRA American International Group	14.4x	6.7%	US$51.7b

Price-To-Earnings vs Peers: AIG.PRA is good value based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (25.4x).

Price to Earnings Ratio vs Industry

How does AIG.PRA's PE Ratio compare vs other companies in the US Insurance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	2x	n/a	US$89.87m
AORE.F American Overseas Group	2.1x	n/a	US$16.68m
CUII China United Insurance Service	0.0003x	n/a	US$3.13k

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AIG.PRA is good value based on its Price-To-Earnings Ratio (14.4x) compared to the US Insurance industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is AIG.PRA'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.PRA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.4x
Fair PE Ratio	17x

Price-To-Earnings vs Fair Ratio: AIG.PRA is good value based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

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.

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