American International Group

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Wells Fargo Securities Elyse Greenspan elyse.greenspan@wellsfargo.com
FBR Capital Markets & Co Randy Binner rbinner@fbr.com
RBC Capital Markets Mark Dwelle mark.dwelle@rbccm.com
Bernstein Research Josh Stirling josh.stirling@bernstein.com
Atlantic Equities John Heagerty j.heagerty@atlantic-equities.com
Piper Jaffray John Nadel john.m.nadel@pjc.com
Sandler O’Neill & Partners Paul Newsome pnewsome@sandleroneill.com
Janney Montgomery Scott Larry Greenberg lgreenber@janney.com
Keefe Bruyette & Woods Meyer Shields mshields@kbw.com
William Blair Adam Klauber aklauber@williamblair.com
BMO Capital Markets Charles J. Sebaski charles.sebaski@bmo.com
Deutsche Bank Research Joshua Shanker joshua.shanker@db.com
Credit Suisse Ryan Tunis ryan.tunis@credit-suisse.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 3,981  1,883 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 2,877 2,383 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 417 (406) TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 352,886 355,360 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 1.13% 0.53% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 107,920 2,474 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 2,711.15% 131.38% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket -3.46% -2.44% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  7.90%  7.80%
Enterprise value
EVMarket 104,699  94,921 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  99,919  91,695
Long-Run Growth
g = IR x ROIC
30.58%  0.70% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP  2.50%  2.50%
Margin from Operations M  10.50%  5.21% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D 0.00%  0.00% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 1.79  1.71  3.06%  1.61%  3.16%  1.54%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

17.10 

32.77 3.06% 1.61% 3.16% 1.54%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

 26.30 50.41 3.06% 1.61% 3.16% 1.54%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

36.39 

39.83 3.06% 1.61% 3.16% 1.54%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

17.10 

32.77 3.06% 1.61% 3.16% 1.54%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

0.30 

0.27 3.06%  1.61% 3.16% 1.54%

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