--- title: Aon (AON) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/aon ticker: AON as_of: 2026-10-17 sector: Financial Services industry: Insurance - Brokers --- # Aon (AON) Aon (AON) closed at $292.55 on Oct 16, 2026, undervalued by 19% vs its model value of $362.57 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $292.55 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $362.57 | | Price vs model | undervalued by 19% vs model | | Range of that model | $202.82 – $1,136.73 | | Market value | $62.1B | | P/E (fiscal 2025) | 17.2 | | Net margin (fiscal 2025) | 21.5% | | Free cash flow (fiscal 2025) | $3.2B | | Dividend yield (trailing twelve months) | 1.07% | | Beta | 0.69 | | Cost of capital (WACC) | 7.55% | | Business classification | Mature & Stable (Moderate growth (~13% recent), High profitability (22% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (5.2%)) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Insider buying | #8 | $6.5M | https://sweetvaluelab.com/lists/insider-buying | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 1.07% | | Dividends per share, last 12 months | $3.13 | | Dividends / free cash flow (fiscal 2025) | 19.5% | | Raised | 14 years in a row | | Growth over 5 years | 10.0% a year | | Latest payment | $0.82, ex-date Aug 3, 2026, paid Aug 14, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Jul 30, 2021 | $1.94 | | To Jul 29, 2022 | $2.14 | | To Jul 31, 2023 | $2.35 | | To Aug 1, 2024 | $2.58 | | To Aug 1, 2025 | $2.84 | | Trailing twelve months (to Aug 3, 2026) | $3.13 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $362.57 | $202.82 | $1,136.73 | | DCF · Perpetuity growth · 10y | cross check | $381.43 | $222.37 | $1,140.47 | | DCF · EBITDA exit · 5y | cross check | $370.51 | $257.56 | $503.40 | | DCF · EBITDA exit · 10y | cross check | $387.77 | $264.35 | $551.67 | | P/E · peers | cross check | $335.53 | $317.19 | $551.92 | | P/E · own history | cross check | $493.09 | $441.01 | $568.96 | | PEG | sanity check | $217.81 | $217.81 | $217.81 | | EV/EBITDA · peers | cross check | $267.13 | $252.02 | $302.62 | | EV/Revenue · peers | cross check | $255.74 | $233.22 | $312.79 | | Earnings power value | cross check | $105.38 | $77.19 | $147.54 | | Dividend discount | cross check | $77.94 | $51.82 | $136.67 | ## Insider activity (SEC Form 4) Past 90 days: 6 open-market buys ($6.5M) and 3 open-market sales ($717,750); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Sep 2, 2026 | KNIGHT LESTER B | Director | Open-market buy | 1,739 | $566,270.6 | | Sep 2, 2026 | KNIGHT LESTER B | Director | Open-market buy | 5,097 | $1.7M | | Sep 2, 2026 | KNIGHT LESTER B | Director | Open-market buy | 7,212 | $2.4M | | Sep 2, 2026 | KNIGHT LESTER B | Director | Open-market buy | 4,145 | $1.4M | | Sep 2, 2026 | KNIGHT LESTER B | Director | Open-market buy | 1,440 | $474,753.6 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Sep 22, 2026 | 8-K | 1.01 Entry into a Material Agreement; 1.02 Termination of a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/315293/000119312526397203/d38875d8k.htm | | Sep 17, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/315293/000119312526394533/d105587d8k.htm | | Sep 15, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/315293/000119312526392131/d89499d424b5.htm | | Sep 11, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/315293/000119312526388712/d89499d424b5.htm | | Sep 11, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/315293/000119312526388699/d67980d8k.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Dodge & Cox | 2026-06-30 | 8,593,144 | $2.9B | | Viking Global | 2026-06-30 | 1,151,269 | $381.9M | | Klarman | 2026-06-30 | 687,000 | $227.9M | | First Pacific Advisors | 2026-06-30 | 681,367 | $226.0M | 10 tracked managers in all. ## About Aon plc operates as a professional services firm in the United States, rest of the Americas, the United Kingdom, Ireland, rest of Europe, the Middle East, Africa, and the Asia Pacific. It operates through Risk Capital and Human Capital segments. The company offers commercial risk solutions comprising retail and insurance brokerage, specialty solutions, global risk consulting, captives management, and affinity programs; health solutions, such as consulting and brokerage, consumer benefits, and talent advisory services; and wealth solutions, including retirement consulting and investments. It also provides treaty and facultative reinsurance; strategy and technology group solutions; insurance-linked securities, capital raising, strategic advice, restructuring, and merger and acquisition services; and risk management products and solutions, capital market solutions, and corporate finance adv… --- Source: https://sweetvaluelab.com/stocks/aon (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.