3 models fit American International Group Inc. New Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Gold80
Valued as an insurer: Residual income, P/E comparison, and Dividend discount.
ACCE opinionAmerican International Group Inc. New Common Stock (AIG)
Fair value (3 models)
$102
ACCE price target
$85.50
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 11:06 CEST; previously $97.45 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 00:00 CEST; previously $105 since 8 May 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $81.26 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison, Dividend discount, and Residual income.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
20.1% below
+25.1% to fair value
ACCE score
55
out of 100
Analysts
36% buy
22 covering
P/E
15.2x
forward 8.5x
1-year return
+3.1%
Dividend yield
2.26%
American International Group Inc. New Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
AIG writes commercial property and casualty, life and retirement, and general insurance, with a large footprint in global commercial lines and a retirement business that sells annuities through its Corebridge stake and related platforms. The structural advantage is scale and distribution: a $41.4B market cap insurer with diversified underwriting across commercial and personal lines, where pricing discipline and reserve quality matter more than top-line growth. Revenue growth is essentially flat at 0.5%, so the case rests on margin and capital returns rather than expansion, and the 19.4% operating margin against a 7.2% ROE shows the equity base is heavy relative to earnings. The stock trades at 14.5x trailing and 8.5x forward earnings, a steep drop that the market is pricing as either a peak-earnings call or a sign of doubt about the forecast. Whether that gap closes depends on evidence that underwriting margins hold through the next cycle, and that the company converts its earnings into buybacks instead of retained capital.