Is Aon Plc overvalued or undervalued?

Jun 25 2025 09:06 AM IST
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As of April 25, 2025, Aon Plc is considered overvalued due to a high P/E ratio of 29, an elevated EV to EBITDA of 15.61, and a concerning negative price to book value of -136.75, despite outperforming the S&P 500 with a 21.01% return over the past year.
As of 25 April 2025, Aon Plc's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its P/E ratio of 29, which is higher than its peer Marsh & McLennan Cos., Inc. at 27.15 and significantly above Willis Towers Watson Plc at 23.39. Additionally, Aon's EV to EBITDA stands at 15.61, which is also on the higher side compared to its peers.

The notable outlier in Aon's financials is its negative price to book value of -136.75, which raises concerns about its capital structure and profitability. Given these metrics, Aon Plc appears to be overvalued in the current market. Furthermore, while the company has outperformed the S&P 500 over the past year with a return of 21.01% compared to 10.26%, this does not mitigate the valuation concerns reflected in its financial ratios.
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