AON Valuation

Aon PLC

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367.000

+0.46(0.125%)1D

Overview
Forecast
Valuation
Earnings

AON Relative Valuation

AON'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, AON is overvalued; if below, it's undervalued.

Historical Valuation

Aon PLC (AON) is now in the Fair zone, suggesting that its current forward PE ratio of 20.33 is considered Fairly compared with the five-year average of 20.90. The fair price of Aon PLC (AON) is between 359.13 to 402.85 according to relative valuation methord.

Relative Value

Fair Zone

359.13-402.85

Current Price：367.00

Fair

20.33

Trailing

Forward

16.06

EV/EBITDA

Aon PLC. (AON) has a current EV/EBITDA of 16.06. The 5-year average EV/EBITDA is 16.60. The thresholds are as follows: Strongly Undervalued below 13.95, Undervalued between 13.95 and 15.27, Fairly Valued between 17.92 and 15.27, Overvalued between 17.92 and 19.25, and Strongly Overvalued above 19.25. The current Forward EV/EBITDA of 16.06 falls within the Historic Trend Line -Fairly Valued range.

16.46

EV/EBIT

Aon PLC. (AON) has a current EV/EBIT of 16.46. The 5-year average EV/EBIT is 17.23. The thresholds are as follows: Strongly Undervalued below 14.40, Undervalued between 14.40 and 15.82, Fairly Valued between 18.64 and 15.82, Overvalued between 18.64 and 20.06, and Strongly Overvalued above 20.06. The current Forward EV/EBIT of 16.46 falls within the Historic Trend Line -Fairly Valued range.

4.40

Aon PLC. (AON) has a current PS of 4.40. The 5-year average PS is 4.56. The thresholds are as follows: Strongly Undervalued below 3.71, Undervalued between 3.71 and 4.13, Fairly Valued between 4.98 and 4.13, Overvalued between 4.98 and 5.41, and Strongly Overvalued above 5.41. The current Forward PS of 4.40 falls within the Historic Trend Line -Fairly Valued range.

16.45

P/OCF

Aon PLC. (AON) has a current P/OCF of 16.45. The 5-year average P/OCF is 19.53. The thresholds are as follows: Strongly Undervalued below 14.82, Undervalued between 14.82 and 17.17, Fairly Valued between 21.89 and 17.17, Overvalued between 21.89 and 24.24, and Strongly Overvalued above 24.24. The current Forward P/OCF of 16.45 falls within the Undervalued range.

18.14

P/FCF

Aon PLC. (AON) has a current P/FCF of 18.14. The 5-year average P/FCF is 20.34. The thresholds are as follows: Strongly Undervalued below 12.33, Undervalued between 12.33 and 16.34, Fairly Valued between 24.35 and 16.34, Overvalued between 24.35 and 28.36, and Strongly Overvalued above 28.36. The current Forward P/FCF of 18.14 falls within the Historic Trend Line -Fairly Valued range.

Aon PLC (AON) has a current Price-to-Book (P/B) ratio of 10.09. Compared to its 3-year average P/B ratio of -52.30 , the current P/B ratio is approximately -119.30% higher. Relative to its 5-year average P/B ratio of -18.02, the current P/B ratio is about -156.03% higher. Aon PLC (AON) has a Forward Free Cash Flow (FCF) yield of approximately 3.68%. Compared to its 3-year average FCF yield of 4.27%, the current FCF yield is approximately -13.92% lower. Relative to its 5-year average FCF yield of 4.25% , the current FCF yield is about -13.41% lower.

10.09

P/B

Median3y

-52.30

Median5y

-18.02

3.68

FCF Yield

Median3y

4.27

Median5y

4.25

Competitors Valuation Multiple

The average P/S ratio for AON's competitors is 3.53, providing a benchmark for relative valuation. Aon PLC Corp (AON) exhibits a P/S ratio of 4.40, which is 24.90% above the industry average. Given its robust revenue growth of 10.51%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Arthur J. Gallagher & Co.

Marsh & McLennan Companies Inc

Willis Towers Watson PLC

3.23

-0.18%

31.88B

Performance Decomposition

Market capitalization of AON increased by 6.27% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.76B to 4.16B.

The secondary factor is the Margin Expansion, contributed -0.07%to the performance.

Overall, the performance of AON in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.51%

3.76B → 4.16B

Revenue Growth

-0.07%

14.31 → 14.30

Margin Expansion

-4.17%

32.06 → 30.72

P/E Change

6.27%