Approach 1: Allianz Excess Returns Analysis <\/p>\n
The Excess Returns valuation approach examines how much value a company generates over and above its cost of equity, focusing on the returns made on its invested capital. Instead of relying solely on profits or dividends, this model considers whether Allianz is using shareholders\u2019 money efficiently to earn more than it costs to fund its operations and growth.<\/p>\n
For Allianz, the latest analysis shows a Book Value of \u20ac158.34 per share and a Stable Earnings Per Share (EPS) of \u20ac33.09, based on a weighted average of future Return on Equity estimates from seven analysts. The company\u2019s Cost of Equity is \u20ac8.81 per share, meaning Allianz generates an Excess Return of \u20ac24.28 per share from its investments, with an average Return on Equity of 18.51%. Analysts project a Stable Book Value of \u20ac178.73 per share, supported by consensus from six sources.<\/p>\n
Using the Excess Returns Model, the estimated intrinsic value of Allianz is \u20ac899.56 per share. Compared to its recent share price, this suggests the stock is trading at roughly a 60% discount to its calculated fair value, indicating the market may be significantly undervaluing Allianz\u2019s strong returns on capital.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Excess Returns analysis suggests Allianz is undervalued by 60.0%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 907 more undervalued stocks based on cash flows<\/a>.<\/p>\n Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Allianz.<\/a><\/p>\n Approach 2: Allianz Price vs Earnings <\/p>\n The Price-to-Earnings (PE) ratio is often the go-to valuation metric for profitable companies like Allianz because it directly compares what investors are paying for each euro of earnings. This metric helps reveal whether a stock\u2019s price is justified by its actual profits, making it a practical tool for companies with steady, positive earnings.<\/p>\n Story Continues <\/p>\n Market participants recognize that what counts as a \u201cnormal\u201d or \u201cfair\u201d PE ratio is not one size fits all; it depends on expected growth rates and risks. Fast-growing, stable firms tend to trade at higher PE multiples, while those with slower growth or greater uncertainties warrant lower PE ratios. For Allianz, the current PE ratio is 13.1x, which lines up closely with its peer group average of 13.10x and stands above the broader insurance industry average of 11.64x. This positions Allianz slightly ahead of its sector but in line with its direct competitors.<\/p>\n Simply Wall St\u2019s proprietary \u201cFair Ratio\u201d cuts through some of the limitations of basic comparisons. The Fair Ratio, calculated as 12.95x for Allianz, accounts for specific factors like earnings growth, risk profile, profit margins, industry landscape, and market capitalization, giving a more tailored valuation barometer than peers or sector averages alone. Since Allianz\u2019s actual PE ratio of 13.1x is less than 0.10 away from this Fair Ratio, the market\u2019s current pricing looks well calibrated for the business\u2019s fundamentals and outlook.<\/p>\n Result: ABOUT RIGHT<\/p>\n PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1420 companies where insiders are betting big on explosive growth<\/a>.<\/p>\n Upgrade Your Decision Making: Choose your Allianz Narrative <\/p>\n Earlier we mentioned that there is an even better way to understand valuation, so let\u2019s introduce you to Narratives. A Narrative is simply your story or perspective about a company that connects its business drivers, future performance assumptions, and what you believe is a fair value, all in one place. Unlike traditional metrics, a Narrative lets you capture why you think Allianz will grow (or not), what revenue or margin changes you expect, and how those translate mathematically to a share price.<\/p>\n Narratives are easy to use and accessible directly on Simply Wall St\u2019s Community page, where millions of investors actively share their views. The real strength of Narratives is that they link Allianz\u2019s \u201cstory\u201d to a transparent financial forecast and an up-to-date value estimate, helping you decide if the current market price is an opportunity to buy, hold, or sell.<\/p>\n What makes it even more powerful is that Narratives update dynamically. If new earnings, news, or risks emerge, the story and valuation adjust, keeping your investment outlook relevant. For example, one Allianz Narrative based on strong digital growth and disciplined capital strategy projects a fair value as high as \u20ac431.0 per share, while another, factoring in regulatory and integration risks, sees fair value closer to \u20ac311.0. This dynamic approach lets you compare your own belief to the professionally analyzed consensus and makes investment decisions more personal, data-driven, and responsive than ever before.<\/p>\n Do you think there’s more to the story for Allianz? Head over to our Community to see what others are saying!<\/a><\/p>\n This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n Companies discussed in this article include ALV.DE<\/a>.<\/p>\n Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Wondering if Allianz is a bargain or already priced for perfection? 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<\/a> ALV Discounted Cash Flow as at Nov 2025 <\/p>\n<\/a> XTRA:ALV PE Ratio as at Nov 2025 <\/p>\n
<\/a> XTRA:ALV Community Fair Values as at Nov 2025 <\/p>\n