AIA Group Valuation

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

Below Fair Value: AAGI.Y ($30.1) is trading below our estimate of fair value ($51.78)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAGI.Y?

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

The above table shows the Price to Earnings ratio for AAGI.Y. This is calculated by dividing AAGI.Y's market cap by their current earnings.
What is AAGI.Y's PE Ratio?
PE Ratio	16.8x
Earnings	US$4.83b
Market Cap	US$80.90b

AAGI.Y 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	4.2x
Enterprise Value/EBITDA	14.2x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does AAGI.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for AAGI.Y 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	13.3x
AFL Aflac	16.6x	-2.6%	US$63.3b
MET MetLife	17.2x	13.3%	US$61.1b
PRU Prudential Financial	11.4x	6.4%	US$46.1b
UNM Unum Group	8x	-3.9%	US$14.0b
AAGI.Y AIA Group	16.8x	13.9%	US$629.4b

Price-To-Earnings vs Peers: AAGI.Y is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (13.3x).

Price to Earnings Ratio vs Industry

How does AAGI.Y'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: AAGI.Y is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the US Insurance industry average (13.9x).

Price to Earnings Ratio vs Fair Ratio

What is AAGI.Y'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.

AAGI.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.8x
Fair PE Ratio	14.3x

Price-To-Earnings vs Fair Ratio: AAGI.Y is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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.

Discover undervalued companies

China Life Insurance

HK$796.1b

Operates as a life insurance company in the People’s Republic of China.

LFCH.Y

HK$6.21

3.0%

-30.1%

Sompo Holdings

JP¥3.8t

Provides property and casualty (P&C) insurance services in Japan and internationally.

SMPN.Y

JP¥12.82

3.1%

65.2%

Markel Group

US$23.0b

A diverse holding company, engages in marketing and underwriting specialty insurance products in the United States, Bermuda, the United Kingdom, and Germany.

MKL

US$1,785.11

2.0%

25.3%