Is American International Group, Inc. overvalued or undervalued?

Sep 20 2025 05:25 PM IST
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As of August 6, 2025, American International Group, Inc. is considered expensive and overvalued with a P/E ratio of 45, significantly higher than its peers, and has underperformed the S&P 500 with a 1-year return of 6.45% compared to 17.14%.
As of 6 August 2025, the valuation grade for American International Group, Inc. has moved from very expensive to expensive. The company is currently overvalued based on its high valuation ratios, including a P/E ratio of 45, a price to book value of 3.47, and an EV to EBITDA ratio of 38.42. In comparison, peers such as The Hartford Financial Services Group, Inc. have a more attractive P/E ratio of 13.05, while Arch Capital Group Ltd. has a fair P/E of 13.85, indicating that AIG's valuation is significantly higher than its competitors.

Additionally, AIG's recent stock performance shows a 1-year return of 6.45%, which lags behind the S&P 500's return of 17.14% over the same period, reinforcing the notion that the stock may be overvalued in the current market context.
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