Aviva Share Price: Is Aviva Undervalued?

Aviva’s share price was up by 1.5 per cent in yesterday’s trading and closed the market trading at 417p. The bullish move is also a continuation of the past few days’ trading sessions, where Aviva prices have risen by 4 per cent in the past six days. 

Most Recent Financial Data and Dividend Yield

The first-quarter financial report of 2022, released on May 18, showed continued growth across Life and General Insurance for Aviva. According to the report, UK & I, Life sales increased by 2% to £8.4 billion.

The company also reported a growth in its Bulk Purchase Annuity (BPA) sales of 29 per cent, which amounted to £843m. It also indicated optimism in the second half of the year, where they expected BPA to continue its growth. 

The Aviva share yield, at more than 9 per cent, is also one of the highest in the markets today. Despite its sluggish share prices in the past few months, which have seen its year-to-date value drop by 24 per cent, the huge dividend yield makes Aviva look like a bargain. 

Is Aviva undervalued?

Aviva has been trending downwards throughout the year. However, in the past few trading sessions, Aviva’s share price has started to recover in the markets. Despite the recent recovery, many investors are still wary of investing in a stock that has lost 24% of its value in six months.

However, considering an over 9 per cent dividend yield for the company’s shares, the current share price looks like a bargain. A Motley Fool evaluation also shows that the company is valued at a cheap 7.2 times earnings. Therefore, my share price analysis for Aviva indicates it is highly undervalued. 

On that note, my Aviva share price prediction expects continued growth throughout the month. There is a high likelihood that we will see the prices rise to hit the monthly price high of 436p in the next few trading sessions. My Aviva share price analysis also shows a likelihood of a strong bullish move in the coming months.

Aviva Share Price Daily Chart