AIG Valuation

American International Group Inc

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81.320

-0.28(-0.343%)1D

Overview
Forecast
Valuation
Earnings

AIG Relative Valuation

AIG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AIG is overvalued; if below, it's undervalued.

Historical Valuation

American International Group Inc (AIG) is now in the Fair zone, suggesting that its current forward PE ratio of 11.14 is considered Fairly compared with the five-year average of 10.83. The fair price of American International Group Inc (AIG) is between 70.26 to 92.38 according to relative valuation methord.

Relative Value

Fair Zone

70.26-92.38

Current Price：81.32

Fair

11.14

Trailing

Forward

0.00

EV/EBITDA

American International Group Inc. (AIG) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 1.28. The thresholds are as follows: Strongly Undervalued below -3.96, Undervalued between -3.96 and -1.34, Fairly Valued between 3.90 and -1.34, Overvalued between 3.90 and 6.52, and Strongly Overvalued above 6.52. The current Forward EV/EBITDA of 0.00 falls within the Historic Trend Line -Fairly Valued range.

9.49

EV/EBIT

American International Group Inc. (AIG) has a current EV/EBIT of 9.49. The 5-year average EV/EBIT is 10.51. The thresholds are as follows: Strongly Undervalued below 5.98, Undervalued between 5.98 and 8.25, Fairly Valued between 12.78 and 8.25, Overvalued between 12.78 and 15.04, and Strongly Overvalued above 15.04. The current Forward EV/EBIT of 9.49 falls within the Historic Trend Line -Fairly Valued range.

1.62

American International Group Inc. (AIG) has a current PS of 1.62. The 5-year average PS is 1.18. The thresholds are as follows: Strongly Undervalued below 0.34, Undervalued between 0.34 and 0.76, Fairly Valued between 1.60 and 0.76, Overvalued between 1.60 and 2.02, and Strongly Overvalued above 2.02. The current Forward PS of 1.62 falls within the Overvalued range.

6.92

P/OCF

American International Group Inc. (AIG) has a current P/OCF of 6.92. The 5-year average P/OCF is 4.16. The thresholds are as follows: Strongly Undervalued below -1.50, Undervalued between -1.50 and 1.33, Fairly Valued between 6.99 and 1.33, Overvalued between 6.99 and 9.82, and Strongly Overvalued above 9.82. The current Forward P/OCF of 6.92 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

American International Group Inc. (AIG) has a current P/FCF of 0.00. The 5-year average P/FCF is 1.91. The thresholds are as follows: Strongly Undervalued below -3.71, Undervalued between -3.71 and -0.90, Fairly Valued between 4.72 and -0.90, Overvalued between 4.72 and 7.53, and Strongly Overvalued above 7.53. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

American International Group Inc (AIG) has a current Price-to-Book (P/B) ratio of 1.10. Compared to its 3-year average P/B ratio of 1.08 , the current P/B ratio is approximately 1.41% higher. Relative to its 5-year average P/B ratio of 0.92, the current P/B ratio is about 19.13% higher. American International Group Inc (AIG) has a Forward Free Cash Flow (FCF) yield of approximately 6.99%. Compared to its 3-year average FCF yield of 10.45%, the current FCF yield is approximately -33.14% lower. Relative to its 5-year average FCF yield of 9.24% , the current FCF yield is about -24.36% lower.

1.10

P/B

Median3y

1.08

Median5y

0.92

6.99

FCF Yield

Median3y

10.45

Median5y

9.24

Competitors Valuation Multiple

The average P/S ratio for AIG's competitors is 1.55, providing a benchmark for relative valuation. American International Group Inc Corp (AIG) exhibits a P/S ratio of 1.62, which is 4.38% above the industry average. Given its robust revenue growth of 8.09%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AIG.N

American International Group Inc

Sun Life Financial Inc

Arch Capital Group Ltd

Performance Decomposition

Market capitalization of AIG increased by 6.71% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.24 to 16.13.

The secondary factor is the Revenue Growth, contributed 8.09%to the performance.

Overall, the performance of AIG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

8.09%

6.56B → 7.09B

Revenue Growth

122.79%

7.24 → 16.13

Margin Expansion

-124.17%

-63.05 → 15.24

P/E Change

6.71%