AON
Aon plc
$358.65
▼ 0.6%Updated Aug 7, 11:30 AM ET
AON at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 68/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 9.4% over the last 12 months
Market Cap
$76.35B
P/E
19.39x
Forward P/E (est.)
13.85x
ROE
45.1%
Revenue Growth
6.9%
EPS Growth
55.3%
Profit Margin
22.5%
FCF Yield
4.4%
Debt / Equity
1.63x
ROIC
14.0%
Interest Coverage
8.98x
Current Ratio
1.07x
Dividend Yield
1.0%
Implied Growth (rev. DCF)
4.6%
Rating Score
68/100
Aon plc (AON) is a large-cap company in the Insurance Brokers industry, part of the Financials sector of the S&P 500, with a market value around $76.35B.
In its latest reported year it generated about $17.18B in revenue and $3.69B in net profit.
Our model rates AON Favorable (68/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
26.0% average over the last 3 years
±5.8 pts around 21.4% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 10 of 10 years
14.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AON's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AON trades near $358.65, above its 50-day average ($322.61) and 200-day average ($336.09). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 62 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AON's is $10.43 (~2.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AON found buyers near $313.62 (support) and sellers near $357.54 (resistance); its 52-week range is $304.59–$381.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
9.0%
Revenue moved from $9.41B in 2016 to $17.18B in 2025, a 6.9% compound annual growth rate. The most recent year grew a steady 6.9% year over year. Slower, mature growth is common for established businesses.
Gross Margin
47.8%
Operating Margin
25.3%
Net Margin
21.5%
ROE
45.1%
Aon plc keeps about 22.5% of each sales dollar as net profit, with a 47.8% gross margin and 25.3% operating margin. Return on equity is 45.1% and return on invested capital about 14.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$15.25B
Net Debt
$14.07B
Net Debt / EBITDA
3.24x
Debt / Equity
1.63x
Leverage: debt-to-equity is 1.6x, and operating profit covers interest about 9.0x, with a current ratio of 1.1x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $15.25B of total debt against $1.18B of cash.
Operating CF
$3.48B
Free Cash Flow
$3.22B
FCF Margin
18.7%
In the latest year Aon plc produced about $3.48B of operating cash flow and $3.22B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.0%
Per share (latest FY)
$2.91
Total paid (latest FY)
$629.00M
History on record
10 years
dividend uses 20% of free cash flow
17% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
19.39x
P/S
4.11x
P/B
8.78x
EV / EBITDA
—
AON trades at 19.4x trailing earnings (about 13.8x on estimated forward earnings), 4.1x sales, and 8.8x book value. Reverse-engineering today's price implies the market expects roughly 4.6% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$304.60
Current price
$358.65
Starting FCF (latest 10-K)
$3.22B
Growth, years 1–5
6.9%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where AON sits versus its Financials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How AON stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
In the Financials sector (289 S&P 500 companies), AON ranks #49 of 289 by our overall rating. It trades at a premium versus the sector on earnings (19.4x P/E vs. 15.8x median) with a higher return on equity (45.1% vs. 13.6%) and slower revenue growth (6.9% vs. 15.9%).
P/E vs sector
19.4x
median 15.8x
ROE vs sector
45.1%
median 13.6%
Growth vs sector
6.9%
median 15.9%
Sector rank
#49
of 289 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size. Sector median is across all 289 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $358.65 today · expected CAGR -5% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $18.38B | $19.67B | $21.05B | $22.52B | $24.10B |
| Net income | $4.04B | $4.33B | $4.63B | $4.95B | $5.30B |
| EPS | $19.00 | $20.33 | $21.75 | $23.28 | $24.90 |
| Share price (low) | $209.00 | $223.63 | $239.28 | $256.03 | $273.95 |
| Share price (high) | $360.99 | $386.26 | $413.30 | $442.23 | $473.19 |
| CAGR (low–high) | -42% / 1% | -21% / 4% | -13% / 5% | -8% / 5% | -5% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AON:
- High net margins (22.5%) point to pricing power or efficiency.
- Strong return on equity (45.1%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.4%) funds buybacks and dividends.
- Our model's overall read is Favorable (68/100).
The case against AON:
- Elevated leverage (debt/equity 1.6x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Aon plc is a large-cap financials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 19.4x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 29 Wall Street analysts covering AON recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-6 pts of buy ratings).
Latest SEC Filings
AON's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
AON — frequently asked questions
Is AON a good stock to buy?
We don't give buy or sell advice. Our model rates Aon plc Favorable (68/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AON's rating on The Stocks School?
Aon plc currently scores 68/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AON's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Aon plc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AON calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this AON analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AON. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.