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 Undervalued zone, suggesting that its current forward PE ratio of 18.71 is considered Undervalued compared with the five-year average of 20.87. The fair price of Aon PLC (AON) is between 369.13 to 414.92 according to relative valuation methord. Compared to the current price of 347.71 USD , Aon PLC is Undervalued By 5.8%.
Relative Value
Fair Zone
369.13-414.92
Current Price：347.71
5.8%
Undervalued
18.71
PE
1Y
3Y
5Y
Trailing
Forward
15.09
EV/EBITDA
Aon PLC. (AON) has a current EV/EBITDA of 15.09. The 5-year average EV/EBITDA is 16.57. The thresholds are as follows: Strongly Undervalued below 13.88, Undervalued between 13.88 and 15.22, Fairly Valued between 17.91 and 15.22, Overvalued between 17.91 and 19.25, and Strongly Overvalued above 19.25. The current Forward EV/EBITDA of 15.09 falls within the Undervalued range.
15.48
EV/EBIT
Aon PLC. (AON) has a current EV/EBIT of 15.48. The 5-year average EV/EBIT is 17.17. The thresholds are as follows: Strongly Undervalued below 14.29, Undervalued between 14.29 and 15.73, Fairly Valued between 18.62 and 15.73, Overvalued between 18.62 and 20.06, and Strongly Overvalued above 20.06. The current Forward EV/EBIT of 15.48 falls within the Undervalued range.
4.15
PS
Aon PLC. (AON) has a current PS of 4.15. The 5-year average PS is 4.56. The thresholds are as follows: Strongly Undervalued below 3.72, Undervalued between 3.72 and 4.14, Fairly Valued between 4.98 and 4.14, Overvalued between 4.98 and 5.40, and Strongly Overvalued above 5.40. The current Forward PS of 4.15 falls within the Historic Trend Line -Fairly Valued range.
18.15
P/OCF
Aon PLC. (AON) has a current P/OCF of 18.15. The 5-year average P/OCF is 19.52. The thresholds are as follows: Strongly Undervalued below 14.78, Undervalued between 14.78 and 17.15, Fairly Valued between 21.89 and 17.15, Overvalued between 21.89 and 24.26, and Strongly Overvalued above 24.26. The current Forward P/OCF of 18.15 falls within the Historic Trend Line -Fairly Valued range.
20.02
P/FCF
Aon PLC. (AON) has a current P/FCF of 20.02. The 5-year average P/FCF is 20.49. The thresholds are as follows: Strongly Undervalued below 12.63, Undervalued between 12.63 and 16.56, Fairly Valued between 24.43 and 16.56, Overvalued between 24.43 and 28.36, and Strongly Overvalued above 28.36. The current Forward P/FCF of 20.02 falls within the Historic Trend Line -Fairly Valued range.
Aon PLC (AON) has a current Price-to-Book (P/B) ratio of 9.34. Compared to its 3-year average P/B ratio of -48.92 , the current P/B ratio is approximately -119.09% higher. Relative to its 5-year average P/B ratio of -18.20, the current P/B ratio is about -151.30% higher. Aon PLC (AON) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.24%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.17% , the current FCF yield is about -100.00% lower.
9.34
P/B
Median3y
-48.92
Median5y
-18.20
4.09
FCF Yield
Median3y
4.24
Median5y
4.17
Competitors Valuation Multiple
The average P/S ratio for AON's competitors is , providing a benchmark for relative valuation. Aon PLC Corp (AON) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.42%, 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 AON decreased by 3.19% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.54 to 11.76.
The secondary factor is the Revenue Growth, contributed 7.42%to the performance.
Overall, the performance of AON in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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