AAGIY Valuation - Is AIA Group Ltd ADR Over or Undervalued?

Comprehensive analysis of AIA Group Ltd ADR valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

Updated January 21, 2026-6 min read-View Full Analysis

Current Stock Price

$42.48

Market Cap

$111.47B

Valuation Date

Jan 21, 2026

Valuation Verdict

Fairly Valued

Based on valuation multiples, AAGIY appears reasonably priced relative to fundamentals. Metrics show balanced valuation.

Key Valuation Metrics

These four fundamental valuation ratios help determine if AAGIY is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)

Good

19.03x

Near market average

Investors pay $19.03 for every $1 of annual earnings

P/B Ratio (Price-to-Book)

High

2.75x

Moderate premium

Stock trades at 2.75x its book value per share

P/S Ratio (Price-to-Sales)

High

4.37x

Moderate

Market values each $1 of revenue at $4.37

EV/EBITDA

N/A

EBITDA data unavailable

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.

P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.

P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.

EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How AAGIY Compares to Peers

What This Means for Investors

Balanced Valuation

AIA Group Ltd ADR (AAGIY) appears fairly valued based on current multiples. This balanced valuation suggests the stock is priced appropriately relative to its fundamentals. For investors, this means the stock may be suitable for those seeking exposure to Financial Services without taking on significant valuation risk in either direction.

Bullish Considerations

P/E ratio below market average

Bearish Considerations

Complete Your Analysis

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Analyst Ratings

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Deep Valuation Analysis

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Frequently Asked Questions

What is AAGIY's P/E ratio and what does it mean?

AAGIY has a P/E (Price-to-Earnings) ratio of 19.03. This means investors are paying $19.03 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

Is AAGIY stock overvalued or undervalued?

Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), AAGIY appears fairly valued. Based on valuation multiples, AAGIY appears reasonably priced relative to fundamentals. Metrics show balanced valuation. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

What is a good P/E ratio for AAGIY?

There's no single "good" P/E ratio as it varies by industry and growth stage. For AIA Group Ltd ADR, compare the current P/E of 19.03 against: (1) Industry peers, (2) Historical average P/E for AAGIY, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

How do I use valuation ratios to make investment decisions?

Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare AAGIY against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

What is EV/EBITDA and why does it matter?

EV/EBITDA (Enterprise Value to EBITDA) is N/A for AAGIY. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.