Aon plc (AON)

Insurance Agents, Brokers & Service

Latest Price

$360.55

TTM P/E

19.79

Normalized P/E

28.70

Div Yield

0.83%

Book Value

45.89

P/B Ratio

7.86

Valuation metrics

EPS: $17.02

Book value / share: $43.08

Formula: √(22.5 × EPS × BVPS)

Graham Number

$128.44

64% downside

Norm. op. income: $3.7B (median of 7yr)

Tax rate: 18%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$78.22

78% downside

Base FCF: $3.0B (median of recent 5yr)

Growth: 10%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$278.08

23% downside

EPS: $17.02

Target P/E: 29×

Formula: EPS × P/E

P/E Fair Value

$493.58

+37% upside