Aon plc (AON) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+8.9%

$359.08

vs $329.87 price

Levered DCF

$360.27

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.62

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.6×	28.62×	23.1×	24.54×	53.77×	24.88×	32.44×	31.46×
P/B	8.12×	12.4×	-71.7×	-120.11×	63.65×	14.02×	14.73×	8.59×
P/S	4.42×	4.84×	4.43×	5.09×	5.54×	4.43×	4.51×	3.31×
EV / EBITDA	17.06×	18.79×	18.03×	19.48×	30.02×	17.75×	20.97×	18.05×
Gross margin	47.7%	47.2%	48.4%	48.1%	44.7%	46.6%	45.0%	43.3%
Operating margin	25.3%	24.4%	28.3%	29.4%	17.1%	25.1%	19.7%	14.3%
Net margin	21.5%	16.9%	19.2%	20.7%	10.3%	17.8%	13.9%	10.5%
Current ratio	1.11×	1.02×	1×	1.02×	1×	1.07×	1.06×	1.08×
Debt / equity	1.77×	2.92×	-14.57×	-22.07×	9.82×	2.55×	2.54×	1.54×
Interest coverage	5.33×	4.87×	7.82×	9.04×	6.49×	8.33×	7.07×	5.55×
Dividend yield	0.8%	0.7%	0.8%	0.7%	0.7%	0.8%	0.8%	1.1%
Payout ratio	17.0%	21.2%	19.1%	17.9%	35.6%	20.9%	26.8%	33.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	39.5%	43.4%	-310.4%	-489.4%	118.3%	56.3%	45.4%	27.3%
Return on invested capital	12.2%	11.2%	22.9%	22.7%	9.9%	14.8%	12.4%	10.2%
Return on assets	7.3%	5.4%	7.6%	7.9%	3.9%	6.1%	5.2%	4.3%
Free cash flow yield	4.2%	3.7%	5.4%	4.8%	3.0%	5.4%	3.2%	4.1%
Earnings yield	4.9%	3.5%	4.3%	4.1%	1.9%	4.0%	3.1%	3.2%
Enterprise value	$91.2B	$92.7B	$70.5B	$74.5B	$77.4B	$57B	$57.5B	$41.4B
Net debt / EBITDA	2.87×	3.4×	2.88×	2.87×	3.83×	2.5×	2.84×	2.51×
Cash conversion cycle (days)	199	130	-30	-28	-25	-20	-11	-18