Aon plc. - Class A
Exchange: NYSESector: Financial ServicesIndustry: Insurance Brokers
Aon plc is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
Did you know?
Capital expenditures increased by 21% from FY24 to FY25.
Current Price
$323.14
+0.56%GoodMoat Value
$349.22
8.1% undervaluedProfile
Valuation (TTM)
Market Cap$69.45B
P/E18.80
EV$83.15B
P/B7.43
Shares Out214.94M
P/Sales4.04
Revenue$17.18B
EV/EBITDA12.73
Aon plc. - Class A (AON) Stock Analysis
GoodMoat Analysis
Aon is a high-quality, moat-protected insurance broker with exceptional profitability (ROE 39.5%) but modest growth (3.7% YoY). Its valuation appears fair, with a GoodMoat target of $349.22 offering a marginal 8.6% upside from the current price.
Read full analysis
Aon plc is a global leader in professional services, providing risk, retirement, and health solutions through its insurance brokerage and consulting operations. The business exhibits strong moat characteristics, scoring well on criteria like switching costs (long-term client relationships and complex, embedded services), strategic partnerships, and a global scale advantage that is difficult for new entrants to replicate. This is reflected in its outstanding profitability metrics, including an ROE of 39.5% and an operating margin of 25.3%, which are hallmarks of a quality business. Financially, it generates solid free cash flow (FCF yield 4.7%) and is GAAP profitable, though revenue growth is currently modest at 3.7% YoY. Applying the GoodMoat Decision Framework, the company passes the Moat & Quality Gate with a likely high business score. However, the valuation assessment is less compelling. The current price of $321.45 is near the GoodMoat target of $349.22, implying a margin of safety of only about 8.6%, which falls into the 'Marginal' (10-20%) band. This, combined with a debt/equity ratio of 1.7, suggests the stock is fairly priced for its quality but does not offer a significant discount. For a value investor, Aon represents a classic 'watchlist' candidate—a strong business worth understanding, but one where the opportunity may lie in waiting for a more attractive entry point during market dislocations.
Market Cap$69.45B
Current Price$323.14
P/E Ratio18.80
Forward P/E—
PEG Ratio0.14
EPS$17.02
Book Value$43.51
P/B Ratio7.43
AON Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 12.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 14.7B
Revenue
11.0B
FY19
11.1B
FY20
12.2B
FY21
12.5B
FY22
13.4B
FY23
15.7B
FY24
17.2B
FY25
Net Income
1.5B
FY19
2.0B
FY20
1.3B
FY21
2.6B
FY22
2.6B
FY23
2.7B
FY24
3.7B
FY25
AON 52-Week Range
$309.97
$381.07
50-Day MA: $328.23200-Day MA: $346.97
Did you know?
Net income compounded at 15.8% annually over 6 years.
Aon plc. - Class A (AON) Financial Summary
Aon plc. - Class A (AON) is a Financial Services company in the Insurance Brokers industry, listed on NYSE. The stock currently trades at $323.14 with a market capitalization of $69.45B.
Key valuation metrics include a P/E ratio of 18.80, price-to-book ratio of 7.43, and EPS of $17.02. The company reports a profit margin of 21.5% and return on equity of 39.5%.
AON Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $69.45B |
| P/E Ratio | 18.80 |
| EPS | $17.02 |
| P/B Ratio | 7.43 |
| P/S Ratio | 4.04 |
| EV/EBITDA | 12.73 |
| Dividend Yield | 0.91% |
| Profit Margin | 21.5% |
| Return on Equity | 39.5% |
| Debt/Equity | 1.70 |
AON Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $11.01B | $1.53B |
| FY20 | $11.07B | $1.97B |
| FY21 | $12.19B | $1.25B |
| FY22 | $12.48B | $2.59B |
| FY23 | $13.38B | $2.56B |
| FY24 | $15.70B | $2.65B |
| FY25 | $17.18B | $3.69B |
Aon plc. - Class A (AON) Valuation
Based on GoodMoat's DCF model, Aon plc. - Class A has a fair value estimate of $349.22. At the current price of $323.14, the stock appears 7.5% undervalued relative to our intrinsic value estimate.
AON Quality Indicators
Aon plc. - Class A maintains a profit margin of 21.5% and an operating margin of 25.3%. Return on equity stands at 39.5%. The current ratio is 1.11. Debt-to-equity ratio is 1.70.
About Aon plc. - Class A
Aon plc is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
AON Free Cash Flow
Aon plc. - Class A generated $3.22B in trailing twelve-month free cash flow, representing an FCF yield of 4.63%. This moderate FCF yield indicates reasonable cash generation.
AON Shares Outstanding
Aon plc. - Class A has 0.21 billion shares outstanding at a share price of $323.14, giving it a market capitalization of $69.45B.
AON Recent Insider Trades
Recent insider transactions at Aon plc. - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Zeidel Darren (General Counsel) | SELL | 4,300 | $1.42M |
| Zeidel Darren (General Counsel) | SELL | 5,040 | $1.64M |
| KNIGHT LESTER B (Director) | BUY | 4,000 | $1.28M |