American International Group, Inc.

NYSE:AIG Stock Report

Market Cap: US$53.3b

American International Group Valuation

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

Below Fair Value: AIG ($78.34) is trading below our estimate of fair value ($140.19)

Significantly Below Fair Value: AIG 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?

Other financial metrics that can be useful for relative valuation.

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/Revenue1.7x
Enterprise Value/EBITDA9x
PEG Ratio2.2x

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.2x
AIZ Assurant
15.2x13.3%US$9.7b
HMN Horace Mann Educators
33.3x49.9%US$1.5b
TRV Travelers Companies
17.7x15.2%US$52.4b
MET MetLife
38.7x22.1%US$53.4b
AIG American International Group
14.8x6.7%US$53.3b

Price-To-Earnings vs Peers: AIG is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (26.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AIG is good value based on its Price-To-Earnings Ratio (14.8x) compared to the US Insurance industry average (14.8x).


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 Ratio14.8x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: AIG is good value based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).


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 AIG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$78.34
US$77.96
-0.5%
6.6%US$87.00US$68.00n/a20
Mar ’25US$72.84
US$77.96
+7.0%
6.6%US$87.00US$68.00n/a20
Feb ’25US$68.82
US$76.37
+11.0%
7.0%US$86.00US$66.00n/a19
Jan ’25US$67.75
US$75.01
+10.7%
7.5%US$86.00US$67.00n/a17
Dec ’24US$65.97
US$72.65
+10.1%
6.8%US$83.00US$65.10n/a17
Nov ’24US$62.05
US$71.26
+14.8%
7.8%US$81.00US$64.00n/a16
Oct ’24US$60.60
US$70.21
+15.9%
9.0%US$81.00US$62.00n/a15
Sep ’24US$59.24
US$70.21
+18.5%
9.0%US$81.00US$62.00n/a15
Aug ’24US$60.38
US$68.47
+13.4%
10.2%US$80.00US$57.00n/a15
Jul ’24US$57.54
US$68.50
+19.0%
10.3%US$79.00US$57.00n/a14
Jun ’24US$53.74
US$69.31
+29.0%
9.3%US$79.00US$58.00n/a13
May ’24US$53.09
US$67.81
+27.7%
10.3%US$79.00US$55.00n/a16
Apr ’24US$50.36
US$69.81
+38.6%
10.0%US$86.00US$60.00n/a16
Mar ’24US$60.96
US$70.69
+16.0%
9.3%US$86.00US$60.00US$72.8416
Feb ’24US$61.23
US$70.31
+14.8%
8.8%US$86.00US$60.00US$68.8216
Jan ’24US$63.24
US$67.33
+6.5%
11.1%US$85.00US$58.00US$67.7515
Dec ’23US$63.10
US$66.87
+6.0%
10.8%US$85.00US$58.00US$65.9715
Nov ’23US$57.07
US$65.00
+13.9%
13.0%US$83.00US$53.00US$62.0513
Oct ’23US$47.48
US$65.67
+38.3%
10.1%US$78.00US$56.00US$60.609
Sep ’23US$52.34
US$65.67
+25.5%
14.3%US$80.00US$50.00US$59.249
Aug ’23US$51.04
US$64.44
+26.3%
14.1%US$80.00US$50.00US$60.389
Jul ’23US$52.02
US$68.62
+31.9%
11.9%US$81.00US$50.00US$57.5413
Jun ’23US$57.84
US$69.38
+20.0%
11.0%US$81.00US$50.00US$53.7413
May ’23US$58.51
US$68.57
+17.2%
10.8%US$80.00US$50.00US$53.0914
Apr ’23US$63.79
US$67.36
+5.6%
10.6%US$80.00US$50.00US$50.3614
Mar ’23US$57.89
US$67.36
+16.4%
10.6%US$80.00US$50.00US$60.9614

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.