A Business at a Glance
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Aon plc
AON
$78.5B
Mkt Cap
$361.70
+1.66%
Aon plc (AON) has a current P/E ratio of 21.3, compared to its historical median P/E of 25.4. The stock is currently considered Fair based on its historical valuation range.
Aon plc (AON) has a 5-year average return on invested capital (ROIC) of 20.2%. This indicates strong capital allocation and a potential competitive advantage.
Aon plc (AON) has a market capitalization of $77.3B. It is classified as a large-cap stock.
Yes, Aon plc (AON) pays a dividend with a trailing twelve-month yield of 0.83%. The company also returns capital through share buybacks, with a buyback yield of 1.62%.
Based on historical P/E analysis, Aon plc (AON) appears fair. The current P/E of 21.3 is 16% below its historical median of 25.4. The estimated fair value CAGR (P/E method) is 21.8%.
Aon plc (AON) operates in the Insurance Agents, Brokers & Service industry, within the Financials sector.
Aon plc (AON) reported annual revenue of $17.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Aon plc is a leading global professional services firm operating through two reportable segments: Risk Capital and Human Capital. Risk Capital comprises Commercial Risk Solutions (insurance and specialty brokerage, global risk consulting, captives management, and affinity programs) and Reinsurance Solutions (treaty reinsurance, facultative reinsurance, strategy and technology advisory, and capital markets services). Human Capital includes Health Solutions (consulting, brokerage, consumer benefits, compensation, and talent advisory) and Wealth Solutions (retirement consulting, pension administration, and investments consulting). The company generates revenue primarily through commissions from insurance and reinsurance companies, fees for consulting and advisory services, and compensation for administrative services, with a business model characterized by high recurring revenue streams, capital-light operations, and strong cash flow generation. Aon serves clients in more than 120 countries across all market segments and nearly every industry, with no single client representing more than 1% of total revenue, providing diversification across geographies and sectors. The firm leverages its Aon Business Services (ABS) platform and proprietary analytics capabilities—including tools such as the Risk Capital Analyzer, ReMetrica, PathWise, and Capital Insights Explorer—to differentiate its offerings and drive client value through integrated risk and human capital solutions delivered through its Aon United strategy.
【Strategic investments driving growth】 Management expects to continue executing its Aon United strategy with mid-single-digit or greater organic revenue growth in 2026, supported by new business wins, compounding contributions from revenue-generating hires in priority areas, and accretive growth in the middle market. The company anticipates 70–80 basis points of adjusted operating margin expansion in 2026, driven by operating leverage from the scalable ABS platform, approximately $100 million in restructuring savings, and benefits from accelerating the NFP integration, partially offset by a 20 basis point headwind from lower fiduciary investment income. Management remains confident in the durability of its business model and expects to grow faster than the market and increase market share over time, supported by strong free cash flow generation and disciplined capital allocation that balances organic growth investments with strategic M&A and share repurchases.
| Metric | Target | Period |
|---|---|---|
| Organic revenue growth | mid-single digit or greater | FY2026 |
| Adjusted operating margin expansion | 70-80 basis points | FY2026 |
| Free cash flow growth | double-digit | FY2026 |
| Free cash flow generation | $4.3 billion | FY2026 |
| Share repurchases | at least $1 billion | FY2026 |
| Revenue-generating population expansion | 4%-8% | FY2026 |
| Tax rate | 19.5%-20.5% | FY2026 |
Organic revenue growth (FY2026): “We are reaffirming our 2026 full year guidance for mid-single digit or greater organic revenue growth, supported by continued new business wins, the compounding contributions from our revenue generating hires, and accretive growth in middle market.”
Adjusted operating margin expansion (FY2026): “we are reaffirming our expectations for 70 to 80 basis points of margin expansion for the full year.”
Free cash flow growth (FY2026): “We continue to expect double-digit free cash flow growth in 2026.”
Free cash flow generation (FY2026): “In 2026, we expect $4.3 billion of free cash flow generation from operating income and working capital improvements.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 17.5B | 17.2B | 15.7B | 13.4B | 12.5B | 12.2B |
| Net Income | 3.9B | 3.7B | 2.7B | 2.6B | 2.6B | 1.3B |
| EPS | $18.38 | $17.02 | $12.49 | $12.51 | $12.14 | $5.55 |
| Free Cash Flow | 3.5B | 3.2B | 2.8B | 3.2B | 3.0B | 2.0B |
| ROIC | 15.7% | 15.9% | 16.8% | 27.8% | 27.9% | 12.5% |
| Gross Margin | - | 83.4% | 83.4% | 84.8% | 85.8% | 76.5% |
| Debt/Equity | 1.49 | 1.63 | 2.68 | -13.53 | -20.24 | 9.48 |
| Dividends/Share | $3.01 | $2.91 | $2.64 | $2.41 | $2.19 | $1.99 |
| Operating Income | 4.6B | 4.3B | 3.8B | 3.8B | 3.7B | 2.1B |
| Operating Margin | 26.3% | 25.3% | 24.4% | 28.3% | 29.4% | 17.1% |
| ROE | 40.1% | 47.8% | 100.2% | -378.5% | - | 55.1% |
| Shares Outstanding | 214M | 217M | 212M | 205M | 213M | 226M |
Aon plc passes 7 of 9 quality checks, indicating strong fundamentals.
Aon plc trades at 21.3x trailing earnings, compared to its 15-year median P/E of 25.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 24.1x vs a median of 23.6x. The company's 5-year average ROIC is 20.2% with a gross margin of 82.8%. Total shareholder yield (dividends + buybacks) is 2.5%. At current prices, the estimated annualized return to fair value is +18.0%.
Aon plc (AON) has a net profit margin of 21.5%. This is a strong margin indicating high profitability.
Aon plc (AON) generated $3.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Aon plc (AON) has a debt-to-equity ratio of 1.63. This indicates higher leverage, which may increase financial risk.
Aon plc (AON) reported earnings per share (EPS) of $17.02 in its most recent fiscal year.
Aon plc (AON) has a return on equity (ROE) of 47.8%. This indicates the company generates strong returns for shareholders.
Aon plc (AON) has a 5-year average gross margin of 82.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for Aon plc (AON), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Aon plc (AON) has a book value per share of $43.08, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to continue executing its Aon United strategy with mid-single-digit or greater organic revenue growth in 2026, supported by new business wins, compounding contributions from revenue-generating hires in priority areas, and accretive growth in the middle market. The company anticipates 70–80 basis points of adjusted operating margin expansion in 2026, driven by operating leverage from the scalable ABS platform, approximately $100 million in restructuring savings, and benefits from accelerating the NFP integration, partially offset by a 20 basis point headwind from lower fiduciary investment income. Management remains confident in the durability of its business model and expects to grow faster than the market and increase market share over time, supported by strong free cash flow generation and disciplined capital allocation that balances organic growth investments with strategic M&A and share repurchases.
Based on recent SEC filings and earnings calls, Aon plc (AON) has provided the following forward guidance: Organic revenue growth: mid-single digit or greater (FY2026); Adjusted operating margin expansion: 70-80 basis points (FY2026); Free cash flow growth: double-digit (FY2026); Free cash flow generation: $4.3 billion (FY2026); Share repurchases: at least $1 billion (FY2026), plus 2 additional metrics.
Share repurchases (FY2026): “We plan to return at least $1 billion in share repurchases while continuing to evaluate our inorganic pipeline for high margin, high growth areas across Risk Capital and Human Capital.”
Revenue-generating population expansion (FY2026): “We plan to continue investing in growth and to expand this population by an additional 4%-8% in 2026.”
Tax rate (FY2026): “Our full year tax outlook remains unchanged at 19.5%-20.5%.”