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Aviva plc (AV) Fair Value & Analysis

Financial Services · GB · Market cap 20.0B GBX

AP Aviva plc AV · LSE
Price£6.73
Fair Value£4.49
Upside-33.2%
Quality57/100
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Mixed Growth
Thin margins · 3.2% net margin
Moderate debt · negative free cash flow
5.96% dividend yield
Trails peers (4/14)
Narrow moat 41/100
Evidence: High Range £3.37 – £5.61 Share as image

Fair value as of: Jul 18, 2026

From 17 valuation models · updated 20 days ago

Fair value updated Jul 18, 2026, revised from £4.48 to £4.49 (+0.2%) since Jun 26, 2026. Share price +5.1% over the past month.

A solid business, but screening 33% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£5.61). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) 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)

£6.73 £2.48 Fair Value £4.49 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £2.48 – £6.73 · fair‑value band £3.37 – £5.61 · the £6.73 price screens above the £4.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Aviva plc (AV) currently trades at £6.73, while our model-based Fair Value estimate is £4.49, implying the stock looks roughly 33.2% overvalued today. We read business quality at 57/100 (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, 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 Jul 18, 2026

Our scenario range runs from £3.37 (bear case) to £5.61 (bull case); at £6.73, 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 -12% fair-value upside, at -33%, 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 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
Residual Income £2.92 £3.27 £4.98 76
ROIC Compounder £7.62 £8.18 £8.67 72
Gordon GGM £3.82 £7.95 £12.62 70
All 17 models by family
DCF Models
Owner Earnings £10.45 £18.33 £34.89 31
Earnings-Based
Graham-Dodd £2.35 £16.38 £22.98 54
Lynch FV £8.46 £12.09 £15.71 50
PEG = 1.0 £8.46 £12.09 £15.71 46
EPV £7.62 £8.18 £8.67 59
Dividend Discount
Gordon GGM £3.82 £7.95 £12.62 70
DDM Multi-Stage £3.82 £6.71 £8.35 61
Multiples
P/E Multiple £5.18 £6.91 £8.63 63
P/S Multiple £4.40 £5.87 £7.34 58
P/B Multiple £4.40 £5.87 £7.34 55
EV/EBIT £12.58 £15.35 £18.13 53
EV/EBITDA £11.05 £13.31 £15.57 54
EV/Revenue £9.87 £12.27 £14.68 43
Asset-Based
NCAV (Graham) £1.62 £2.17 £3.24 50
Economic Profit
Residual Income £2.92 £3.27 £4.98 76
ROIC Compounder £7.62 £8.18 £8.67 72
Growth Earnings
Growth-Adj P/E £10.90 £15.58 £20.25 68

Widest divergence: DCF Models (£18.33) versus Asset-Based (£2.17). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 28.7B GBX
Revenue growth (YoY) +37.1%
Net margin 3.2%
Return on equity 10.7%
Free cash flow −3.0B GBX FY2025
P/E ratio 22.6
More key figures
Operating margin 11.5%
EPS (TTM) £0.2700
Dividend yield 6.4%
EPS growth (YoY) +980%
Net cash 10.0B GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 40 · Market factors (momentum, volatility) 71

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 57
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.

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. growth/yr (3Y)
+36.3%
Avg. growth/yr (5Y)
+13.9%
Avg. growth/yr (21Y)
+1.8%
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

AV screens 33% 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 · 84 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 · Below median
Fair Value upside −33% · 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) 6.0% · Top 25%
Debt / equity 0.57× · Higher than 75% of peers

Valuation Multiples vs Insurance - Diversified median · lower = cheaper

P/E (TTM) 25.7× · Pricier than 75% of peers
P/B 2.78× · Pricier than 75% of peers
P/S (TTM) 0.94× · Pricier than median
EV/EBITDA 4.2× · Cheaper than median
PEG 1.71× · Pricier 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 43
FUTURE 100 · sector 31
PAST 43 · sector 49
HEALTH 71 · sector 89
DIVIDEND 100 · sector 45

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 - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Berkshire Hathaway Inc BRKB 8,562 MXN 10,844 MXN +27%
Allianz SE ALV €421.00 €369.31 -12%
Zurich Insurance Group ZURN CHF 624.40 CHF 619.80 -1%
AXA SA AXAN 888.28 MXN 1,249 MXN +41%
Assicurazioni Generali S.p.A G €42.90 €12.18 -72%
Sun Life Financial Inc SLF C$114.20 C$87.83 -23%
BB Seguridade Participações S.A BBSE3 R$40.71 R$60.39 +48%
Tryg A/S TRYG kr 154.00 kr 116.45 -24%
PT Sinar Mas Multiartha Tbk SMMA 20,625 IDR 4,176 IDR -80%
Caixa Seguridade Participações S.A CXSE3 R$21.77 R$18.60 -15%

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Frequently asked questions

Is Aviva plc (AV) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £4.49 versus a price of £6.73, about −33% (overvalued).
What is the fair value of AV?
Our model-based fair value for Aviva plc is £4.49 (as of Jul 18, 2026), built from audited fundamentals. The current price is £6.73.
What is the quality score of AV?
Aviva plc has a Quality Score of 57/100. 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 Aviva plc (AV)?
Aviva plc reported trailing-twelve-month revenue of about £28.7B (latest available figure, as of Jul 18, 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 6.42% relative to its recent price (as of Jul 18, 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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