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Aon (AON) PS Ratio : 5.12 (As of Oct. 31, 2024)


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What is Aon PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Aon's share price is $366.87. Aon's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $71.71. Hence, Aon's PS Ratio for today is 5.12.

Warning Sign:

Aon PLC stock PS Ratio (=5.15) is close to 2-year high of 5.59

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

AON' s PS Ratio Range Over the Past 10 Years
Min: 2.2   Med: 4.21   Max: 6.06
Current: 5.1

During the past 13 years, Aon's highest PS Ratio was 6.06. The lowest was 2.20. And the median was 4.21.

AON's PS Ratio is ranked worse than
89.58% of 480 companies
in the Insurance industry
Industry Median: 1.07 vs AON: 5.10

Aon's Revenue per Sharefor the three months ended in Sep. 2024 was $17.04. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $71.71.

Good Sign:

Aon PLC has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Aon was 12.90% per year. During the past 3 years, the average Revenue per Share Growth Rate was 11.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 8.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 6.10% per year.

During the past 13 years, Aon's highest 3-Year average Revenue per Share Growth Rate was 27.60% per year. The lowest was -13.30% per year. And the median was 7.80% per year.

Back to Basics: PS Ratio


Aon PS Ratio Historical Data

The historical data trend for Aon's PS 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 PS Ratio Chart

Aon Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.55 4.45 5.57 5.13 4.46

Aon Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PS 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 5.11 4.46 4.99 4.25 4.82

Competitive Comparison of Aon's PS Ratio

For the Insurance Brokers subindustry, Aon's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Insurance Industry

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

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



Aon PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Aon's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=366.87/71.714
=5.12

Aon's Share Price of today is $366.87.
Aon's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $71.71.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Aon  (NYSE:AON) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Aon PS Ratio Related Terms

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


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 resources solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries.
Executives
Byron Spruell director 200 EAST RANDOLPH ST., CHICAGO IL 60601
Lisa Stevens officer: Chief People Officer 200 EAST RANDOLPH, CHICAGO IL 60601
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
Eric Andersen officer: CEO, Aon Benfield 200 EAST RANDOLPH ST., CHICAGO IL 60601
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
Sarah G Smith director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
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
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-