Anything left for American International in June?

Is the organisation valuation justified? Here I will cover the company prospective on valuation to give you a better outlook on taking a position in this stock. What is American International Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of American International to move above current price in 30 days from now is under 4%. The American International Group probability density function shows the probability of American International Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, the stock has beta coefficient of 1.022 . This suggests American International Group market returns are highly-sensitive to returns on the market. As the market goes up or down, American International is expected to follow. Additionally, the company has an alpha of 0.0817 implying that it can potentially generate 0.0817% excess return over S&P 500 after adjusting for the inherited market risk (beta).
Published over a year ago
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Reviewed by Vlad Skutelnik

American International has 34.54B in debt with debt to equity (D/E) ratio of 60.2 . This implies that American International may be unable to create cash to meet all of its financial commitments. The company dividends can provide a clue to current valuation of the stock. This firm one year expected dividend income is about $0.64 per share. Earning per share calculations of the entity is based on official Zacks consensus of 8 analysts regarding the stock future annual earnings. Given the historical accuracy of 45.59%, the future earnings per share of the company is estimated to be 3.86 with lowest and highest values of 3.78 and 3.97 respectively. Please note that this consensus of annual earnings estimates for American International is an estimate of EPS before non-recurring items and including employee stock options expenses.
We determine the current worth of American International Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American International based exclusively on its fundamental and basic technical indicators. By analyzing American International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American International. We calculate exposure to American International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American International's related companies.

American International Investment Alerts

American investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring American International Group performance across your portfolios.Please check all investment alerts for American

American International Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare American value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American International competition to find correlations between indicators driving the intrinsic value of American.

American International Gross Profit

American International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing American International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show American International Gross Profit growth over the last 10 years. Please check American International's gross profit and other fundamental indicators for more details.

Breaking down the case for American International

American International Group utilizes its assets nearly 0.26 percent, earning $0.0026 for each dollar of assets held by the firm. An expanding assets utilization signifies that the company is being more effective with each dollar of assets it shows. In plain English assets utilization of American International shows how effective it operates for each dollar spent on its assets. The latest bullish price patterns experienced by current American International shareholders could raise concerns from investors as the firm closed today at a share price of 46.74 on 6283470.000 in volume. The company management have been very successful with rebalancing the firm components at opportune times to take advantage of market volatility in April. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.1982. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. American International preserves 60.20% of debt to equity. American International is selling for under 47.11. That is 0.66 percent increase. Opened at 47.11. American International Earnings per Diluted Share is rather stable at the moment. Also, American International Asset Turnover is decreasing over the last 5 years. The ongoing value of American International Asset Turnover is 0.13.
 2014 2015 2016 2018 2019 (projected)
American International Interest Expense 1,718,000,000  1,281,000,000  1,260,000,000  1,449,000,000  3,848,871,345 
American International Gross Profit 32,357,000,000  23,251,000,000  16,225,000,000  18,658,750,000  10,900,000,000 
Taking everything into account, we see that American International Almost mirrors market. The firm is undervalued with below average chance of distress within the next 24 months. Our final buy/sell advice on the firm is Buy.

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Editorial Staff

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