INSUR.AUST FPO [IAG] (IAG.AX)

DDM Valuation · Financial Services · Insurance - Property & Casualty

Valuation as at 2026-08-14 · see also the ASX 300 Most Undervalued screen

About INSUR.AUST FPO [IAG]

Insurance Australia Group Limited underwrites general insurance products and provides investment management services in Australia and New Zealand. The company's short-tail insurance products include motor vehicle; home and contents; lifestyle and leisure, including boat, veteran and classic car, and caravan; business packages; farm; commercial motor; commercial property; fleet motor; construction and engineering; rural; marine; and niche insurance, such as pleasure craft, boat, and caravan. It also provides long-tail insurance products, including professional indemnity; compulsory third party, including motor injury liability; workers' compensation; directors' and officers' liability; public and products liability; and commercial liability insurance.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

INSUR.AUST FPO [IAG] IAG.AX

Financial Services · Insurance - Property & Casualty

Price
$8.11
Market Cap
N/A
Dividend Yield
3.8%
Beta
1.00
P/E (TTM)
18.9x
52-Week Range
$6.39–$9.17

INSUR.AUST FPO [IAG]'s price & financial trends

Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn't required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.

Data as at 2026-08-14

Share price · last 2 years

$8.11 +7% vs 2024-08
ASX 200 $7.55$9.20$9.03$7.68$7.51$8.11 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per year

$0.56 +321% vs FY22
$0.13$0.32$0.36$0.56FY22FY23FY24FY25

Return on equity Per year

18.5% +229% vs FY22
5.6%12.5%13.5%18.5%FY22FY23FY24FY25

Dividend per share Per year

$0.36 +79% vs FY22
$0.20$0.12$0.22$0.36FY22FY23FY24FY25

Value investing scale · Buffett · Dalio · Graham

Strong Fit
13 / 17 combined score

1 criterion had no data

See the full Buffett, Dalio & Graham breakdown for IAG.AX →

🏦 Bank/Insurer — valued with the Dividend Discount Model

DCF is not used for bank/insurer stocks: deposits or reserves are a raw material rather than funding, so there's no clean free cash flow. This valuation uses the Dividend Discount Model (DDM) instead.

P/B
2.62x
ROE
15.7%
Div Yield
3.8%

Intrinsic value estimate · 5-year forecast

BEAR
$3.08
vs current $8.11
-62.0% ❌ Overvalued
BASE
$3.44
vs current $8.11
-57.5% ❌ Overvalued
BULL
$3.91
vs current $8.11
-51.8% ❌ Overvalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Risk-free rate
4.80% ● LIVE
Live 10-yr govt bond
Beta
1.00
Floored for non-US stocks
Equity risk premium
6.00%
Market-specific seed
Debt component
None
DDM discounts dividends at cost of equity only
Starting dividend (D0)
$0.31
Annual, per share
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
Dividend growth0.0%0.0%0.0%
Terminal growth2.5%2.5%2.5%
Cost of equity11.80%10.80%9.80%

Cost of Equity (CAPM) = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 1.00 × 6.00% = 10.80%

These numbers come from running INSUR.AUST FPO [IAG]'s dividends through the mechanical DDM formula and assumptions above — not from any view on the news, management, or IAG.AX's competitive position. What is DDM?

Want to test your own dividend growth or cost-of-equity assumptions?Open the full interactive calculator, pre-filled with IAG.AX →

More ASX stocks we've valued

Not financial advice. DDM valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the ASX 300 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is INSUR.AUST FPO [IAG] (IAG.AX) undervalued?

The Base-case DDM estimates intrinsic value at $3.44 vs a price of $8.11 on 2026-08-14 — a -57.5% margin, so the Base case reads overvalued. This is a mechanical output, not advice.