Is Aon Plc overvalued or undervalued?

Sep 20 2025 06:28 PM IST
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As of July 15, 2025, Aon Plc is considered overvalued with a P/E ratio of 29, underperforming the S&P 500, and showing lower returns compared to its peers.
As of 15 July 2025, Aon Plc's valuation grade changed from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 29, which is higher than its peers, such as Marsh & McLennan Cos., Inc. at 24.92 and Arthur J. Gallagher & Co. at 45.99. Additionally, Aon's EV to EBITDA stands at 15.61, while its EV to Sales ratio is 4.84, both suggesting a premium compared to industry norms.

In terms of performance, Aon has underperformed against the S&P 500 in recent periods, with a year-to-date return of -1.78% compared to the S&P's 12.22%. Over the past three years, Aon has returned 27.30%, significantly lagging behind the S&P 500's 70.41%. This trend reinforces the notion that Aon Plc is currently overvalued in the market.
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