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Aon (AON) Shiller PE Ratio : 36.36 (As of Apr. 26, 2024)


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What is Aon Shiller PE Ratio?

As of today (2024-04-26), Aon's current share price is $285.03. Aon's E10 for the quarter that ended in Dec. 2023 was $7.84. Aon's Shiller PE Ratio for today is 36.36.

The historical rank and industry rank for Aon's Shiller PE Ratio or its related term are showing as below:

AON' s Shiller PE Ratio Range Over the Past 10 Years
Min: 22.67   Med: 38.42   Max: 64.16
Current: 36.36

During the past years, Aon's highest Shiller PE Ratio was 64.16. The lowest was 22.67. And the median was 38.42.

AON's Shiller PE Ratio is ranked worse than
89.47% of 361 companies
in the Insurance industry
Industry Median: 13.14 vs AON: 36.36

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Aon's adjusted earnings per share data for the three months ended in Dec. 2023 was $2.470. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $7.84 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Aon Shiller PE Ratio Historical Data

The historical data trend for Aon's Shiller PE Ratio 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.

* Premium members only.

Aon Shiller PE Ratio Chart

Aon Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 48.33 43.51 55.82 44.60 37.14

Aon Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.60 43.38 45.59 41.75 37.14

Competitive Comparison of Aon's Shiller PE Ratio

For the Insurance Brokers subindustry, Aon's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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.


Aon's Shiller PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aon's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Aon's Shiller PE Ratio falls into.



Aon Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Aon's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=285.03/7.84
=36.36

* 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's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Aon's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=2.47/120.1096*120.1096
=2.470

Current CPI (Dec. 2023) = 120.1096.

Aon Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 1.060 100.573 1.266
201406 1.010 100.773 1.204
201409 1.040 100.474 1.243
201412 1.560 99.576 1.882
201503 1.140 99.975 1.370
201506 0.620 100.573 0.740
201509 1.040 100.274 1.246
201512 2.090 99.676 2.518
201603 1.190 99.676 1.434
201606 1.110 101.072 1.319
201609 1.180 100.274 1.413
201612 1.870 99.676 2.253
201703 1.090 100.374 1.304
201706 2.930 100.673 3.496
201709 0.720 100.474 0.861
201712 -0.080 100.075 -0.096
201803 2.370 100.573 2.830
201806 0.190 101.072 0.226
201809 0.600 101.371 0.711
201812 1.410 100.773 1.681
201903 2.700 101.670 3.190
201906 1.140 102.168 1.340
201909 0.930 102.268 1.092
201912 1.580 102.068 1.859
202003 3.290 102.367 3.860
202006 1.700 101.769 2.006
202009 1.180 101.072 1.402
202012 2.270 101.072 2.698
202103 4.000 102.367 4.693
202106 1.660 103.364 1.929
202109 -3.990 104.859 -4.570
202112 3.900 106.653 4.392
202203 4.730 109.245 5.200
202206 2.330 112.734 2.482
202209 1.920 113.431 2.033
202212 3.140 115.425 3.267
202303 5.070 117.618 5.177
202306 2.710 119.611 2.721
202309 2.230 120.708 2.219
202312 2.470 120.110 2.470

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Aon  (NYSE:AON) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Aon Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Aon's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Aon (AON) Business Description

Traded in Other Exchanges
Address
James Joyce Street, Metropolitan Building, Dublin 1, IRL, D01 K0Y8
Aon is a leading global provider of insurance and reinsurance brokerage and human resource solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries around the world.
Executives
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

Aon (AON) Headlines

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