Is American International Group, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for American International Group, Inc. has moved from fair to very expensive. The company is currently overvalued, with a P/E ratio of 45, significantly higher than its peers such as Progressive Corp. at 24.36 and MetLife, Inc. at 17.51. Additionally, the EV to EBITDA ratio stands at 38.42, indicating a premium valuation compared to the industry.
In terms of key financial metrics, American International Group, Inc. has a Price to Book Value of 3.47 and a ROE of 7.64%. The high valuation is further emphasized by its dividend yield of only 0.63%, which is relatively low compared to industry standards. While the stock has outperformed the S&P 500 over the past year with a return of 14.59% versus 10.26%, the current valuation suggests that investors may be paying too much for future growth potential.