AIGNEUTRAL

EV/EBITDA

7.3x

Higher than 20% of Financial Services sector peers

Updated 1928h ago

Sector Performance

20th percentile

AIG

7.3x

Sector Median

13.1x

Sector Avg

15.5x

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Deep Analysis

The current EV/EBITDA of 7.3x compares American International Group's total company value (enterprise value) to its operating earnings (EBITDA), giving a rough measure of how cheap or expensive the stock is relative to its cash generation.

At 7.3x, AIG trades well below the sector median of 11.6x and sits in the 18th percentile among its Financial Services peers, meaning the stock is considerably less expensive than most comparable companies. The trend is completely stable, with no movement year-over-year or quarter-over-quarter — both changes are exactly 0.0%, and the metric has held at 7.3x for the past eight quarters. The combination of a low valuation and a flat trend suggests limited downside risk from further compression, but also signals a lack of catalyst for expansion, implying an opportunity for income-focused investors rather than growth seekers. This stable, below-median valuation supports the overall NEUTRAL verdict: the stock is not overvalued enough to warn against, nor undervalued enough to compel a buy based solely on this metric.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AIG?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does AIG's EV/EBITDA compare to its sector?

AIG's EV/EBITDA of 7.3x compares to a Financial Services sector median of 13.1x, placing it in the 20th percentile.

Who are AIG's closest peers by EV/EBITDA?

The closest Financial Services peers by EV/EBITDA include: SCHW (12.6x), BAC (13.5x), PNC (11.6x), AFL (11.0x), PFG (10.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.