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Aviva PLC (AV) Fair Value & Analysis

Financial Services · GB · Market cap 20.0B GBX · ISIN GB00BPQY8M80

What is Aviva PLC really worth?

AP Aviva PLC AV · LSE
Price£7.30
Fair Value£3.08
Upside−57.8%
Quality49/100

Below-average quality, and trading another 137% above our fair value of £3.08.

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Risks

!Mixed Growth (revenue 5y +13.9 %/yr)
!Thin margins · 3.2% net margin
!Moderate debt · negative free cash flow
!Trails peers (4/14)
!Narrow moat 41/100

For context

·5.39% dividend yield
Evidence: High Range £2.31 – £3.84

Fair value as of: Aug 26, 2026

From 6 valuation models · updated 10 days ago

Share price +4.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (£3.84). The favourable scenario is already priced in.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

£7.37 £2.62 Fair Value £3.08 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 26, 2026.

How to read this chart

60‑month range £2.62 – £7.37 · fair‑value band £2.31 – £3.84 · the £7.30 price screens above the £3.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 26, 2026.

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Analysis

Aviva PLC (AV) currently trades at £7.30, while our model-based Fair Value estimate is £3.08, implying the stock looks roughly 137.0% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Financial Services sector. Bull case: the Dividend Discount group reads highest at a median of £6.71 per share, and 1 of the 6 models we run sit above the £7.30 price. Bear case: the Asset-Based group reads lowest at £2.17, and 5 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Aviva PLC generated revenue of £28.7B at a net margin of 3.2%. Revenue grew 37.1% year over year. It earns a return on equity of 10.7%. The balance sheet holds a net cash position of £10.0B. Fundamentals as of Aug 26, 2026

Our scenario range runs from £2.31 (bear case) to £3.84 (bull case); at £7.30, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at −11% fair-value upside, at −58%, AV screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence £2.92 £3.27 £4.98 73
Gordon GGM £3.82 £7.95 £12.62 64
DDM Multi-Stage £3.82 £6.71 £8.35 64
All 6 models by family
Dividend Discount
Gordon GGM £3.82 £7.95 £12.62 64
DDM Multi-Stage £3.82 £6.71 £8.35 64
Multiples
P/E Multiple £3.37 £4.49 £5.61 63
P/B Multiple £3.40 £4.54 £5.67 55
Asset-Based
NCAV (Graham) £1.62 £2.17 £3.24 54
Economic Profit
Residual Income best evidence £2.92 £3.27 £4.98 73

Widest divergence: Dividend Discount (£6.71) versus Asset-Based (£2.17). Highest evidence: Residual Income (73).

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Key figures & financial health

P/E ratio 27.0
P/S ratio 0.48 P/E × margin
EPS (TTM) £0.2700 price ÷ EPS = P/E 27.0
Dividend yield 5.4% payout 146%
Net margin 1.8% FY2025
Return on equity 10.7% TTM
More key figures
Profitability
Return on assets (EBIT) 0.1% avg 5y
Operating margin 11.5% TTM
Growth
Revenue (TTM) £28.7B TTM
Revenue growth (YoY) +37.1% 3y avg +36.3%
EPS growth (YoY) +980%
Balance sheet & cash flow
Free cash flow −3.0B GBX FY2025
Net cash 10.0B GBX FY2025

Figures from reported company fundamentals · as of Aug 26, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 40 · Market factors (momentum, volatility) 73

Profitability 22
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 97
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Aviva plc provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, India, and China. It operates through General Insurance; Insurance, Wealth & Retirement; Aviva Investors; and International Investments segments.

Full company description

Aviva plc provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, India, and China. It operates through General Insurance; Insurance, Wealth & Retirement; Aviva Investors; and International Investments segments. The company offers gadget, home, motor, pet, and health insurance, as well as commercial, specialty insurance and protection. It also provides life insurance, long-term health and accident insurance, savings, pension, and annuity products, as well as pension fund and lifetime mortgage products; insurance cover to individuals, small and medium-sized businesses for risks associated with motor vehicles and medical expenses, as well as property and liability, such as employers' and professional indemnity liabilities; and personal and commercial lines insurance products for risks associated motor, property, and liability. In addition, the company offers investment management services for institutional pension fund mandates; and manages various retail investment products, including fixed income, equities, multi-asset, real estate and infrastructure for third-party financial institutions, pension funds, public sector organizations, investment professionals, and private investors. It markets its products through a network of insurance brokers, affinity partners, and banks, as well as MyAviva platform price comparison websites. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Aviva PLC reported revenue of £58.5B in FY2025 versus £32.0B in FY2021, a compound +16.3%/yr. Reported net income was £1.0B in FY2025, compounding +25.5%/yr from FY2021.

Growth Quality 49/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£58.5B
Latest YoY
+43.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+36.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.9%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−4.2% (−9.6 + 5.4)
Revenue +16.3%/yr
FY21 £32.0B
FY22 £23.1B
FY23 £34.1B
FY24 £40.9B
FY25 £58.5B
Net income +25.5%/yr
FY21 £416M
FY22 −£1.0B
FY23 £1.1B
FY24 £683M
FY25 £1.0B
Character of growth · EPS growth decomposed (2014-2025) −0.5 % p.a.
Revenue per share +5.5 %

of which total revenue +3.6 % · buybacks/dilution +1.9 %

EBIT margin −4.1 %
Tax rate −0.9 %
Residual (interest, one-offs) −0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

AV screens 137% overvalued. Compare with Berkshire Hathaway Inc →

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Cite: Fair Value Calculator (2026). "Aviva PLC Fair Value". https://www.fairvalue-calculator.com/stock/AV

Peer Group

Insurance - Diversified · 83 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −58% · Bottom 25%
Return on equity (TTM) 11% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 3% · Bottom 25%
Operating margin (TTM) 12% · Above median
Revenue growth 37% · Top 25%
Dividend yield (TTM) 5.4% · Top 25%
Debt / equity 0.57× · Higher than 75% of peers

Valuation Multiples vs Insurance - Diversified median · lower = cheaper

P/E (TTM) 27.0× · Pricier than 75% of peers
P/B 2.79× · Pricier than 75% of peers
P/S (TTM) 0.95× · Pricier than median
EV/EBITDA 4.3× · Cheaper than median
PEG 1.71× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 11
FUTURE100 · sector 31
PAST43 · sector 49
HEALTH71 · sector 89
DIVIDEND100 · sector 72

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Insurance - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 26, 2026).

Stock Price Fair Value vs Fair Value
Berkshire Hathaway Inc BRKB80 1.67 THB 1.48 THB −11%
Allianz SE ALV €453.00 €266.04 −41%
Zurich Insurance Group ZURN CHF 596.00 CHF 335.07 −44%
AXA SA CS €43.61 €39.90 −9%
Assicurazioni Generali S.p.A G €44.11 €10.92 −75%
Sun Life Financial Inc SLF C$108.85 C$57.05 −48%
American International Group AIG $76.14 $80.91 +6%
The Hartford Insurance Group HIG $137.38 $133.10 −3%
Arch Capital Group ACGL $98.76 $124.45 +26%
Swiss Life Holding SLHN CHF 919.00 CHF 425.23 −54%

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Frequently asked questions

Is Aviva PLC (AV) overvalued or undervalued?
As of Aug 26, 2026, our model estimates a fair value of £3.08 versus a price of £7.30, about −58% upside (overvalued).
What is the fair value of AV?
Our model-based fair value for Aviva PLC is £3.08 (as of Aug 26, 2026), built from audited fundamentals. The current price: £7.30.
What is the quality score of AV?
Aviva PLC has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Aviva PLC (AV)?
Aviva PLC reported trailing-twelve-month revenue of about £28.7B (latest available figure, as of Aug 26, 2026).
What is the net profit margin of AV?
The net profit margin of Aviva PLC is about 3.2%, meaning it keeps roughly 3.2% of revenue as net income. Based on the latest reported figures.
Does Aviva PLC pay a dividend?
Aviva PLC currently shows a dividend yield of about 5.39% relative to its recent price (as of Aug 26, 2026).
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