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Aon plc (AON) Stock Analysis

Score B

Financial · Grade A · Bearish

Financial Services · Insurance Brokers

$327.38

Fair Value

$285.35

-12.8%

Conviction

10/10

Quality

A

Classification

Financial

Investment Thesis

Price is above modeled value range. Quality supports holding but not attractive for new positions.

High-quality company trading above modeled fair value. Price above modeled entry range.

For New Investors

Price above modeled value range

For Current Holders

Quantitative score: neutral

Buy if

  • Price drops 15-20% (improves asymmetry)
  • Bull scenario catalysts materialize
  • Market-wide correction creates opportunity

Sell if

  • Bear scenario triggers occur
  • Quality metrics deteriorate (ROIC declining)
  • Better alternatives emerge

Valuation

Fair Value estimate: $285.35 (-12.8%). Approximately at fair value.

PEG-Based EPS

$185.87

FCF DCF Model

$281.84

Blended Fair Value

$285.35

Confidence

Medium

Methods

P/B Relative, P/E Relative, Dividend Discount

Quality Analysis

A

110/120 points

Investable

ROE (3Y Avg)

41.4%

ROIC-WACC Spread

7.9%

D/E Ratio

1.8x

Current Ratio

1.1x

Interest Coverage

5x

FCF Positive Years

3/3

Quality Flags

  • Financial sector: alternative quality assessment applied
  • Strong ROE: 41.4%
  • Excellent efficiency

Market Sentiment

Wall Street Consensus

$397.50

+21.4% Upside

19 analysts

Range: $381.00$443.00

Rating: Buy

Our model is slightly more cautious than Wall Street.

Trend & Technical

Bearish

Price ($327.38) is 4.2% below SMA 200 ($341.63). Bearish trend. Caution on entry.

Technical Score63/100

Tech Score 63/100 — Neutral technical picture. Mixed signals across indicators.

Risk & Reward

Asymmetry Ratio

10.00:1

Expected Return

+113.6%

Bull Upside

+164.6%

Bear Downside

-10.0%

Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

Buy Zone & Action Plan

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Technical Analysis

RSI, MACD, moving averages, trend signals, and momentum indicators.

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Frequently Asked Questions

What is the fair value of AON?

Based on our multi-method conviction analysis, the estimated fair value of Aon plc (AON) is $285.35. This is calculated by blending P/B Relative, P/E Relative, Dividend Discount and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.

Is AON a buy, sell, or hold?

AON currently has a HOLD rating with a conviction score of 10/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.

Is AON a high-quality stock?

Aon plc has a quality grade of A (110/120 points), rated as Investable. Key metrics include ROE of 41.4%, ROIC-WACC spread of 7.9%, and D/E ratio of 1.8x.

What type of stock is AON?

AON is classified as a "financial" in our framework. Financial sector override: Financial Services

What do Wall Street analysts say about AON?

19 Wall Street analysts have a consensus price target of $397.50 for AON, representing +21.4% upside. Targets range from $381.00 to $443.00. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.

What are the risks of investing in AON?

The risk/reward asymmetry ratio for AON is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +113.6%, with bull case upside of +164.6% and bear case downside of -10.0%.

What is the current trend for AON?

AON is in a bearish trend. Price ($327.38) is 4.2% below SMA 200 ($341.63). Bearish trend. Caution on entry. The technical score is 63/100.

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Last updated: May 19, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.