American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: North America Commercial, International Commercial, and Global Personal.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (22 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $138.89 Implied EV: $71.26B |
What growth rate is the market pricing in at $82?
The market implies +2.2% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding -10.3%, reflecting heavy growth investment.
Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Appears undervalued but market is greedy — verify your assumptions aren't too conservative
