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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-06-10), Aon's Intrinsic Value: Projected FCF is $122.38. The stock price of Aon is $283.12. Therefore, Aon's Price-to-Intrinsic-Value-Projected-FCF of today is 2.3.
The historical rank and industry rank for Aon's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Aon was 3.52. The lowest was 1.34. And the median was 2.03.
The historical data trend for Aon's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Aon Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 76.15 | 104.47 | 99.86 | 93.39 | 111.74 |
Aon Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 97.47 | 100.61 | 101.89 | 111.74 | 122.38 |
For the Insurance Brokers subindustry, Aon's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Insurance industry and Financial Services sector, Aon's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Aon's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Aon's Free Cash Flow(6 year avg) = $2,273.60.
Aon's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Mar24) | / | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (10.844211261935 | * | 2273.6 | + | -133 | / | 0.8) | / | 200.100 | |
= | 122.38 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Aon (NYSE:AON) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Aon's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 283.12 | / | 122.38455135 | |
= | 2.31 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Thank you for viewing the detailed overview of Aon's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Byron Spruell | director | 200 EAST RANDOLPH ST., CHICAGO IL 60601 |
Eric Andersen | officer: CEO, Aon Benfield | 200 EAST RANDOLPH ST., CHICAGO IL 60601 |
Sarah G Smith | director | C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282 |
Christa Davies | officer: EVP, Global Finance | AON CORPORATE LAW DEPT, 200 EAST RANDOLPH ST, 8TH FL, CHICAGO IL 60601 |
Michael Neller | officer: Principal Accounting Officer | 200 EAST RANDOLPH ST., CHICAGO IL 60601 |
Mindy F. Simon | officer: Chief Operating Officer | FOUR EMBARCADERO CENTER, SUITE 2100, SAN FRANCISCO CA 94111 |
Adriana Karaboutis | director | C/O BIOGEN IDEC INC., 225 BINNEY ST., CAMBRIDGE MA 02142 |
Darren Zeidel | officer: General Counsel | 200 EAST RANDOLPH ST., CHICAGO IL 60640 |
Lester B Knight | director | C/O AON CORP, 200 EAST RANDOLPH STREET, CHICAGO IL 60601 |
Jillian Slyfield | officer: Chief Innovation Officer | 200 E RANDOLPH ST., CHICAGO IL 60601 |
J Michael Losh | director | H.B. FULLER COMPANY, P.O. BOX 64683, ST. PAUL MN 55164-0683 |
James Platt | officer: Chief Operating Officer | THE LEADENHALL BUILDING, 122 LEADENHALL ST., LONDON X0 EC3V 4AN |
John G Bruno | officer: Executive Vice President, CIO | |
Carolyn Y Woo | director | 801 E. 86TH AVENUE, MERRILLVILLE IN 4641- |
Anthony R Goland | officer: EVP and CHRO | C/O AON LAW DEPARTMENT, 200 EAST RANDOLPH ST, CHICAGO IL 60601 |
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