AIG · NYQ · Financial Services
American International Group, Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 66.64
Market price
USD 82.40
Implied upside
-19.1%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 7.3%
- Payout
- 30%
- Cost of equity
- 7.64%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 41.1bn | USD 43.1bn | USD 45.1bn | USD 47.1bn | USD 49.0bn | USD 50.8bn | USD 52.6bn | USD 54.4bn | USD 56.0bn | USD 57.5bn |
| Return on equity | 7.3% | 7.3% | 7.3% | 7.3% | 7.3% | 7.3% | 7.3% | 7.3% | 7.3% | 7.3% |
| Excess return | USD -146.0m | USD -153.1m | USD -160.1m | USD -167.0m | USD -173.8m | USD -180.4m | USD -186.8m | USD -192.9m | USD -198.8m | USD -204.2m |
| Present value | USD -135.7m | USD -132.2m | USD -128.4m | USD -124.4m | USD -120.3m | USD -116.0m | USD -111.6m | USD -107.1m | USD -102.5m | USD -97.9m |
| Book equity | USD 41.1bn |
| Present value of excess returns | USD -1.2bn |
| Terminal, growing at 2.50% | USD -2.0bn |
| Equity value | USD 38.0bn |
| Per share | USD 66.64 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.648 | Reported 0.475, pulled toward 1.0 (Blume) |
| Cost of equity | 7.64% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.