Seeking Alpha
24 Oct 2026, 14:10 UTC · 1h ago
American International Group: An 11.5% ROE Could Justify A Higher Multiple
Impact · against what's priced in
The report provides a bullish valuation for AIG based on core ROE, but offers no new catalyst as the market already rejects the earnings improvement thesis. Since the price explicitly discounts a re-rating toward analyst targets, the analyst's $93 target is simply a restatement of the bull case the market is currently ignoring.
- AIG+0.10
Challenges what's priced in
- The price assumes
An improving earnings profile that justifies a higher valuation multiple
The analyst argues that a core operating ROE of 11.5% justifies a higher multiple than the current 1.12x P/B, directly supporting the earnings improvement thesis that the market currently declines to pay for.
What AIG's price assumes · Sep 5
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