Aon plc

Methodology

Aon's insurance and reinsurance brokerage business generates predictable fee-based revenue with less volatility than underwriting-based insurers. The company's global presence and data analytics capabilities provide steady organic growth supplemented by strategic acquisitions. This fair value calculation works well for Aon as a high-quality broker with visible revenue streams and strong client retention across corporate insurance and human capital consulting.

Methodology

Aon's PEG ratio typically ranges from 2.0-3.0, reflecting premium valuations for a leading global insurance broker with consistent high-single-digit to low-double-digit growth. The company's combination of organic growth, margin expansion, and strategic M&A creates reliable earnings progression. Compare to peers like Marsh McLennan and Willis Towers Watson to assess whether Aon's scale advantages and execution track record justify its valuation positioning.

Methodology

Aon's modest dividend yield (around 0.8-1.5%) plays a smaller role than for mature insurers, as the company prioritizes growth investments and share repurchases. The broker's capital-light model generates strong cash flow supporting both dividends and buybacks alongside occasional acquisitions. PEGY adds some context for total return assessment, though for a growth-oriented broker like Aon, organic growth and margin expansion matter more than dividend-adjusted metrics.