AIG PE Ratio & Valuation,Is AIG Overvalued

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 11.16 is considered Fairly compared with the five-year average of 10.94. The fair price of American International Group Inc (AIG) is between 74.46 to 96.26 according to relative valuation methord.

Relative Value

Fair Zone

74.46-96.26

Current Price：84.90

Fair

11.16

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.

9.27

EV/EBIT

American International Group Inc. (AIG) has a current EV/EBIT of 9.27. The 5-year average EV/EBIT is 10.35. The thresholds are as follows: Strongly Undervalued below 5.88, Undervalued between 5.88 and 8.12, Fairly Valued between 12.59 and 8.12, Overvalued between 12.59 and 14.82, and Strongly Overvalued above 14.82. The current Forward EV/EBIT of 9.27 falls within the Historic Trend Line -Fairly Valued range.

1.60

American International Group Inc. (AIG) has a current PS of 1.60. The 5-year average PS is 1.23. The thresholds are as follows: Strongly Undervalued below 0.42, Undervalued between 0.42 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 1.60 falls within the Historic Trend Line -Fairly Valued range.

6.86

P/OCF

American International Group Inc. (AIG) has a current P/OCF of 6.86. The 5-year average P/OCF is 4.39. The thresholds are as follows: Strongly Undervalued below -1.25, Undervalued between -1.25 and 1.57, Fairly Valued between 7.22 and 1.57, Overvalued between 7.22 and 10.04, and Strongly Overvalued above 10.04. The current Forward P/OCF of 6.86 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 1.13. Compared to its 3-year average P/B ratio of 1.08 , the current P/B ratio is approximately 4.05% higher. Relative to its 5-year average P/B ratio of 0.96, the current P/B ratio is about 17.69% higher. American International Group Inc (AIG) has a Forward Free Cash Flow (FCF) yield of approximately 6.12%. Compared to its 3-year average FCF yield of 10.08%, the current FCF yield is approximately -39.32% lower. Relative to its 5-year average FCF yield of 9.75% , the current FCF yield is about -37.24% lower.

1.13

P/B

Median3y

1.08

Median5y

0.96

6.12

FCF Yield

Median3y

10.08

Median5y

9.75

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 1.60, which is 2.94% above the industry average. Given its robust revenue growth of -5.93%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AIG increased by 16.62% 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 6.68%to the performance.

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

-5.93%

6.75B → 6.35B

Revenue Growth

15.87%

7.12 → 8.25

Margin Expansion

6.68%

14.24 → 15.19

P/E Change

16.62%

72.80 → 84.90

Mkt Cap Growth

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Frequently Asked Questions

Is American International Group Inc (AIG) currently overvalued or undervalued?

What is American International Group Inc (AIG) fair value?

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. The fair price of American International Group Inc (AIG) is between 74.46 to 96.26 according to relative valuation methord.

How does AIG's valuation metrics compare to the industry average?

What is the current P/B ratio for American International Group Inc (AIG) as of Dec 15 2025?

As of Dec 15 2025, American International Group Inc (AIG) has a P/B ratio of 1.13. This indicates that the market values AIG at 1.13 times its book value.

What is the current FCF Yield for American International Group Inc (AIG) as of Dec 15 2025?

As of Dec 15 2025, American International Group Inc (AIG) has a FCF Yield of 6.12%. This means that for every dollar of American International Group Inc’s market capitalization, the company generates 6.12 cents in free cash flow.

What is the current Forward P/E ratio for American International Group Inc (AIG) as of Dec 15 2025?

As of Dec 15 2025, American International Group Inc (AIG) has a Forward P/E ratio of 11.16. This means the market is willing to pay $11.16 for every dollar of American International Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for American International Group Inc (AIG) as of Dec 15 2025?

As of Dec 15 2025, American International Group Inc (AIG) has a Forward P/S ratio of 1.60. This means the market is valuing AIG at $1.60 for every dollar of expected revenue over the next 12 months.

AIG Valuation