After a powerful 2023, the Aviva (LSE: AV.) share price has stored up its wonderful kind in 2024. Yr to this point, the inventory has climbed 9.8%.

Meaning within the final 12 months, the insurance coverage stalwart is up 19.7%. Within the earlier 5 years, it has returned 15.5%. It far outperforms the FTSE 100 on all three of these timescales. Wanting again, Aviva has proved to be a shrewd funding.

However now at £4.76 a pop, is it a sensible time to contemplate shopping for some shares in the present day? I’ve had Aviva on my watchlist for some time. I need to discover out if there’s any worth left to squeeze out of its share price in the long term.

Value-to-earnings

I need to first measure this by taking a look at its price-to-earnings (P/E) ratio. This is among the greatest and most typical valuation metrics round.

The Footsie common P/E is round 11. Due to this fact, and as seen beneath, Aviva’s P/E of 12.6 might not scream worth on the floor.

However, I nonetheless suppose that appears like good worth. Not solely is that cheaper than its historic common (14), nevertheless it’s additionally cheaper than friends akin to Admiral Group and Prudential. Based mostly on that, I see worth in it at £4.67.

Created with TradingView

Dividend yield

I additionally need to have a look at its dividend yield. As an investor who’s eager to persevering with constructing a portfolio crammed with high-quality shares producing secure streams of passive revenue, that is vital.

Because the chart beneath exhibits, Aviva yields a mighty 7.7%. That’s over double the Footsie common (3.6%). It’s additionally significantly greater than each Admiral Group and Prudential’s payouts. Once more, this alerts that Aviva seems to be like an funding price contemplating in the present day.

Created with TradingView

A robust enterprise

So, the inventory seems to be interesting at its present price. However I additionally need to dig deeper into how the enterprise is performing.

General, I’m impressed with what I see. Working revenue was up, and prices have been down. The agency achieved its £750m price discount goal a 12 months early.

In Q1 of this 12 months, it supplied additional optimistic information. Gross sales grew in its capital-light companies. Aviva additionally continues with its streamlining enterprise to give attention to its core markets. Lately, it accomplished the exit from its Singapore three way partnership for simply shy of £1bn, “further simplifying the group’s geographic footprint”.

The dangers

Each funding comes with dangers. There are a couple of I see with Aviva.

For instance, streamlining leaves the insurance coverage large counting on only a few markets. Any blips in these may see the share price stumbling.

So as to add to that, many are predicting the UK financial system will proceed to battle for development within the months to come back, which can weigh down on the enterprise. We’ve acquired a common election to cope with in addition to additional points akin to inflation and rate of interest cuts.

Time to purchase?

However all issues thought of, I believe Aviva seems to be like good worth in the present day. It’s a inventory I’ve been maintaining an in depth eye on. If I’ve the money this month, I plan to purchase some shares and begin constructing up my place.