American International Group, Inc. (AIG) — Fair Value Analysis

Base-case fair value (P50): $126.89 · Current price: $79.39 · Verdict: Undervalued

The Verdict on AIG

Monte Carlo simulations suggest that American International Group (AIG) is currently undervalued. Our analysis indicates a median fair value (P50) of $126.89, representing a substantial +59.8% upside potential from its current trading price of $79.39. This comprehensive valuation approach, spanning thousands of forward scenarios, points to a clear discrepancy between AIG's market price and its intrinsic value based on our models.

How AIG stacks up against Financial Services

Within the Financial Services sector, AIG's current valuation of $79.39 stands noticeably below its estimated fair value of $126.89. While AIG's operational and financial health against the sector remains "unrated" at this time, the robust Monte Carlo valuation process nevertheless identifies a significant +59.8% valuation gap. This suggests that despite the absence of a specific quality tier rating, the market may not be fully appreciating AIG's underlying value, presenting an attractive entry point for investors considering the stock's future prospects.

What this means for investors

Investors monitoring AIG should note the considerable +59.8% upside identified by our Monte Carlo simulations, projecting a median target of $126.89 from the current $79.39. While a complete picture requires understanding both the potential downside and more aggressive bull-case scenarios, the current analysis firmly labels AIG as undervalued. For a full breakdown of bear-case and bull-case price distributions, along with the probability of reaching various price targets, sign up for a free FairCurve account.