AON Stock Analysis — Aon plc
Sector: Financials
AI Verdict
Aon trades at 16.4x next year's earnings with 11.8% growth expected—this is a fair price if its data-driven client moat holds, but the premium is fragile if growth disappoints.
Competitive Moat
Aon is a global insurance brokerage and risk management firm with sticky client relationships due to its scale, proprietary data analytics, and integration into complex corporate risk programs. Its consulting and reinsurance arms create switching costs for large clients who rely on Aon's expertise and data-driven insights.
Summary
Aon's forward P/E of 16.4x and 11.8% expected EPS growth make it a rare large-cap financial trading below sector median multiples.
Where It Stands
Aon is down -12.56% over the past year, trades at 16.4x forward earnings versus the financials sector median of 14x, and its RSI of 36.8 signals shares are near oversold territory.
Key Metrics
- RSI: 36.8 — Near Oversold
- Trailing P/E: 18.3x
- Forward P/E: 16.4x
- PEG Ratio: 1.57
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $66.5B
- Dividend Yield: 0.01%
- 1-Year Return: -12.56%
- 52-Week High: $381.00
- 52-Week Low: $304.59
Analyst Consensus
18 Buy · 8 Hold · 2 Sell (28 analysts)
Bull Case
With analysts expecting 11.8% EPS growth and a forward P/E of 16.4x, Aon offers above-average earnings expansion at a valuation only modestly above sector norms.
Bear Case
If the P/E compresses from 16.4x to the sector median of 14x, shares could fall another 15%, especially with weak price momentum (RSI 36.8).
Catalyst to Watch
Watch for upcoming earnings to confirm double-digit EPS growth; a miss could trigger further multiple compression.