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 10.09 is considered Fairly compared with the five-year average of 10.94. The fair price of American International Group Inc (AIG) is between 71.82 to 93.71 according to relative valuation methord.
Relative Value
Fair Zone
71.82-93.71
Current Price：77.07
Fair
10.12
PE
1Y
3Y
5Y
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 1.29. The thresholds are as follows: Strongly Undervalued below -3.96, Undervalued between -3.96 and -1.34, Fairly Valued between 3.91 and -1.34, Overvalued between 3.91 and 6.53, and Strongly Overvalued above 6.53. The current Forward EV/EBITDA of 0.00 falls within the Historic Trend Line -Fairly Valued range.
8.54
EV/EBIT
American International Group Inc. (AIG) has a current EV/EBIT of 8.54. The 5-year average EV/EBIT is 10.36. The thresholds are as follows: Strongly Undervalued below 5.90, Undervalued between 5.90 and 8.13, Fairly Valued between 12.60 and 8.13, Overvalued between 12.60 and 14.83, and Strongly Overvalued above 14.83. The current Forward EV/EBIT of 8.54 falls within the Historic Trend Line -Fairly Valued range.
1.45
PS
American International Group Inc. (AIG) has a current PS of 1.45. The 5-year average PS is 1.22. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.82, Fairly Valued between 1.63 and 0.82, Overvalued between 1.63 and 2.04, and Strongly Overvalued above 2.04. The current Forward PS of 1.45 falls within the Historic Trend Line -Fairly Valued range.
6.23
P/OCF
American International Group Inc. (AIG) has a current P/OCF of 6.23. The 5-year average P/OCF is 4.38. The thresholds are as follows: Strongly Undervalued below -1.26, Undervalued between -1.26 and 1.56, Fairly Valued between 7.20 and 1.56, Overvalued between 7.20 and 10.02, and Strongly Overvalued above 10.02. The current Forward P/OCF of 6.23 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 1.02. Compared to its 3-year average P/B ratio of 1.08 , the current P/B ratio is approximately -5.71% higher. Relative to its 5-year average P/B ratio of 0.95, the current P/B ratio is about 7.14% higher. American International Group Inc (AIG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.11%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 9.71% , the current FCF yield is about -100.00% lower.
1.02
P/B
Median3y
1.08
Median5y
0.95
6.74
FCF Yield
Median3y
10.11
Median5y
9.71
Competitors Valuation Multiple
The average P/S ratio for AIG's competitors is 3.04, providing a benchmark for relative valuation. American International Group Inc Corp (AIG) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -5.93%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AIG increased by 6.15% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.12 to 8.25.
The secondary factor is the P/E Change, contributed -3.79%to the performance.
Overall, the performance of AIG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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