AON Stock Analysis — Aon plc
Sector: Financials
AI Verdict
Aon trades at 15.9x next year's earnings while analysts expect +22.8% EPS growth — that's cheap for the growth on offer if its sticky client relationships and data-driven risk platforms keep delivering.
Competitive Moat
Aon is a global insurance brokerage and risk management firm with entrenched relationships among large corporate clients, creating switching costs due to the complexity of risk solutions and regulatory requirements. Its scale and proprietary data analytics platforms help it deliver tailored risk advice that smaller competitors struggle to match.
Summary
Aon's forward P/E of 15.9x paired with 22.8% expected EPS growth makes it a rare financial stock offering double-digit earnings acceleration at a discount to the sector median.
Where It Stands
Aon has returned -0.96% over the past year with an RSI of 66.8 (elevated), and trades at 15.9x forward earnings versus the financial sector median of 14x.
Key Metrics
- RSI: 66.8 — Near Overbought
- Trailing P/E: 19.5x
- Forward P/E: 15.9x
- PEG Ratio: 0.83
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $76.4B
- Dividend Yield: 0.01%
- 1-Year Return: -0.96%
- 52-Week High: $381.00
- 52-Week Low: $304.59
Analyst Consensus
19 Buy · 8 Hold · 2 Sell (29 analysts)
Bull Case
With forward EPS growth expected at 22.8% and a forward P/E of 15.9x, you're paying a below-market multiple for growth that outpaces most financial peers.
Bear Case
An RSI of 66.8 signals pullback risk, so a reversion to a 14x sector P/E would mean a 12% downside from here if growth expectations disappoint.
Catalyst to Watch
Watch for quarterly earnings updates — if EPS growth hits or beats the 22.8% consensus, the valuation discount could close quickly.