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AIA Group (1299) Fair Value & Analysis

Financial Services · HK · Market cap HK$779B

AG AIA Group 1299 · HK
PriceHK$73.15
Fair ValueHK$7.88
Upside-89.2%
Quality60/100
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Weak Growth
Highly profitable · 23.8% net margin
Low debt · generates free cash flow
0.33% dividend yield
Mixed vs. peers (6/15)
Wide moat 71/100
Evidence: High Range HK$5.91 – HK$9.84 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from HK$7.85 to HK$7.88 (+0.4%) since Jun 26, 2026. Share price +0.8% over the past month.

A solid business, but screening 89% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$9.84). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) 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.
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Price vs Fair Value (5 years)

HK$91.88 HK$42.80 Fair Value HK$7.88 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range HK$42.80 – HK$91.88 · fair‑value band HK$5.91 – HK$9.84 · the HK$73.15 price screens above the HK$7.88 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

AIA Group (1299) currently trades at HK$73.15, while our model-based Fair Value estimate is HK$7.88, implying the stock looks roughly 89.2% overvalued today. We read business quality at 60/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, AIA Group generated revenue of HK$26.2B at a net margin of 23.8%. Revenue grew 6.0% year over year. It earns a return on equity of 14.9%. Net debt stands at HK$11.0B. Fundamentals as of Jul 19, 2026

Our scenario range runs from HK$5.91 (bear case) to HK$9.84 (bull case); at HK$73.15, 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. The share trades about 19% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 33% fair-value upside, at -89%, 1299 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF HK$6.60 HK$12.88 HK$24.62 80
Residual Income HK$4.21 HK$5.47 HK$14.31 76
Rev-Margin DCF HK$5.59 HK$10.35 HK$16.74 74
All 26 models by family
DCF Models
FCF DCF HK$6.70 HK$13.66 HK$26.97 38
Owner Earnings HK$8.72 HK$17.64 HK$34.71 31
5Y Revenue Exit HK$5.59 HK$10.51 HK$17.34 39
5Y EBITDA Exit HK$6.69 HK$12.86 HK$20.82 41
5Y P/E Exit HK$7.68 HK$14.97 HK$23.61 38
10Y Revenue Exit HK$5.69 HK$10.65 HK$18.60 36
10Y EBITDA Exit HK$6.66 HK$12.45 HK$21.69 37
10Y P/E Exit HK$7.34 HK$14.07 HK$24.17 35
Earnings-Based
Graham-Dodd HK$4.12 HK$21.56 HK$29.84 54
Lynch FV HK$5.92 HK$8.45 HK$10.99 50
PEG = 1.0 HK$5.92 HK$8.45 HK$10.99 46
EPV HK$5.64 HK$6.72 HK$7.67 59
Dividend Discount
Gordon GGM HK$2.28 HK$4.98 HK$8.38 70
DDM Multi-Stage HK$2.28 HK$4.08 HK$5.19 61
Multiples
P/E Multiple HK$9.09 HK$12.12 HK$15.15 63
P/S Multiple HK$5.93 HK$7.90 HK$9.88 58
P/B Multiple HK$7.72 HK$10.30 HK$12.87 55
EV/EBIT HK$9.35 HK$12.62 HK$15.89 53
EV/EBITDA HK$7.14 HK$9.67 HK$12.20 54
EV/Revenue HK$5.08 HK$7.45 HK$9.82 43
Asset-Based
NCAV (Graham) HK$2.10 HK$2.81 HK$4.20 50
Growth DCF
Growth DCF HK$6.60 HK$12.88 HK$24.62 80
Rev-Margin DCF HK$5.59 HK$10.35 HK$16.74 74
Economic Profit
Residual Income HK$4.21 HK$5.47 HK$14.31 76
ROIC Compounder HK$6.41 HK$9.41 HK$12.88 72
Growth Earnings
Growth-Adj P/E HK$8.60 HK$12.28 HK$15.97 68

Widest divergence: DCF Models (HK$12.86) versus Asset-Based (HK$2.81). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$26.2B
Revenue growth (YoY) +6.0%
Net margin 23.8%
Return on equity 14.9%
Free cash flow HK$5.1B FY2025
P/E ratio 16.0
More key figures
Operating margin 31.4%
EPS (TTM) HK$0.3309
Dividend yield 0.3%
EPS growth (YoY) +9.4%
Net debt HK$11.0B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 51 · Market factors (momentum, volatility) 45

Profitability 36
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 100
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.

About the company

AIA Group Limited, together with its subsidiaries, provides life insurance based financial services in Hong Kong. The company offers life insurance, accident, and health insurance and savings plans; and employee benefits, credit life, and pension services to corporate clients.

Full company description

AIA Group Limited, together with its subsidiaries, provides life insurance based financial services in Hong Kong. The company offers life insurance, accident, and health insurance and savings plans; and employee benefits, credit life, and pension services to corporate clients. It is also involved in the distribution of investment and other financial services products. It sells its products through a network of agents and partners in Mainland China, Macau, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan, Brunei, Vietnam, and India. AIA Group Limited was founded in 1919 and is headquartered in Central, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AIA Group reported revenue of HK$32.6B in FY2025 versus HK$46.9B in FY2021, a compound −8.7%/yr. Reported net income was HK$6.2B in FY2025, compounding −4.2%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$32.6B
Latest YoY
+60.0%
Avg. growth/yr (5Y)
−8.5%
Avg. growth/yr (18Y)
+4.3%
Revenue −8.7%/yr
FY21 HK$46.9B
FY22 −HK$25.0B
FY23 HK$20.0B
FY24 HK$20.4B
FY25 HK$32.6B
Net income −4.2%/yr
FY21 HK$7.4B
FY22 HK$3.3B
FY23 HK$3.8B
FY24 HK$6.8B
FY25 HK$6.2B

1299 screens 89% overvalued. Compare with China Life Insurance Company →

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Cite: Fair Value Calculator (2026). "AIA Group Fair Value". https://www.fairvalue-calculator.com/stock/1299

Peer Group

Insurance - Life · 96 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 56 · Above median
Fair Value upside −89% · Bottom 25%
Return on equity (TTM) 15% · Above median
Return on assets 2% · Above median
Net margin (TTM) 24% · Top 25%
Operating margin (TTM) 31% · Top 25%
Revenue growth 6% · Below median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.33× · Higher than median

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 16.4× · Pricier than median
P/B 2.30× · Pricier than 75% of peers
P/S (TTM) 3.79× · Pricier than 75% of peers
P/FCF 19.3× · Pricier than 75% of peers
EV/EBITDA 10.4× · Pricier than median
PEG 1.01× · Cheaper than median

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.

VALUE 0 · sector 28
FUTURE 30 · sector 44
PAST 59 · sector 42
HEALTH 84 · sector 85
DIVIDEND 7 · sector 54

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥38.72 ¥70.87 +83%
Ping An Insurance (Group) Company 601318 ¥49.60 ¥96.76 +95%
Manulife Financial Corporation MFC C$58.52 C$45.13 -23%
Great-West Lifeco Inc GWO C$92.34 C$59.64 -35%
Life Insurance Corporation LICI ₹438.30 ₹590.43 +35%
Fubon Financial Holding 2881 124.50 TWD 115.05 TWD -8%
Cathay Financial Holding 2882 94.00 TWD 94.95 TWD +1%
Samsung Life Insurance Co 032830 337,500 KRW 166,710 KRW -51%
China Pacific Insurance (Group) Co 601601 ¥29.75 ¥59.50 +100%
Prudential plc PUKN 545.00 MXN 722.72 MXN +33%

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Frequently asked questions

Is AIA Group (1299) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of HK$7.88 versus a price of HK$73.15, about −89% (overvalued).
What is the fair value of 1299?
Our model-based fair value for AIA Group is HK$7.88 (as of Jul 19, 2026), built from audited fundamentals. The current price is HK$73.15.
What is the quality score of 1299?
AIA Group has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of AIA Group (1299)?
AIA Group reported trailing-twelve-month revenue of about HK$26.2B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of 1299?
The net profit margin of AIA Group is about 23.8%, meaning it keeps roughly 23.8% of revenue as net income. Based on the latest reported figures.
Does AIA Group pay a dividend?
AIA Group currently shows a dividend yield of about 0.32% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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