AJG Relative Valuation
AJG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AJG is overvalued; if below, it's undervalued.
Historical Valuation
Arthur J. Gallagher & Co. (AJG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.80 is considered Undervalued compared with the five-year average of 24.02. The fair price of Arthur J. Gallagher & Co. (AJG) is between 281.25 to 335.37 according to relative valuation methord. Compared to the current price of 245.41 USD , Arthur J. Gallagher & Co. is Undervalued By 12.74%.
Relative Value
Fair Zone
281.25-335.37
Current Price：245.41
12.74%
Undervalued
18.80
PE
1Y
3Y
5Y
Trailing
Forward
13.65
EV/EBITDA
Arthur J. Gallagher & Co.. (AJG) has a current EV/EBITDA of 13.65. The 5-year average EV/EBITDA is 15.76. The thresholds are as follows: Strongly Undervalued below 12.93, Undervalued between 12.93 and 14.34, Fairly Valued between 17.17 and 14.34, Overvalued between 17.17 and 18.58, and Strongly Overvalued above 18.58. The current Forward EV/EBITDA of 13.65 falls within the Undervalued range.
14.42
EV/EBIT
Arthur J. Gallagher & Co.. (AJG) has a current EV/EBIT of 14.42. The 5-year average EV/EBIT is 15.49. The thresholds are as follows: Strongly Undervalued below 3.89, Undervalued between 3.89 and 9.69, Fairly Valued between 21.29 and 9.69, Overvalued between 21.29 and 27.09, and Strongly Overvalued above 27.09. The current Forward EV/EBIT of 14.42 falls within the Historic Trend Line -Fairly Valued range.
3.84
PS
Arthur J. Gallagher & Co.. (AJG) has a current PS of 3.84. The 5-year average PS is 4.40. The thresholds are as follows: Strongly Undervalued below 3.01, Undervalued between 3.01 and 3.70, Fairly Valued between 5.09 and 3.70, Overvalued between 5.09 and 5.79, and Strongly Overvalued above 5.79. The current Forward PS of 3.84 falls within the Historic Trend Line -Fairly Valued range.
16.96
P/OCF
Arthur J. Gallagher & Co.. (AJG) has a current P/OCF of 16.96. The 5-year average P/OCF is 20.46. The thresholds are as follows: Strongly Undervalued below 12.40, Undervalued between 12.40 and 16.43, Fairly Valued between 24.50 and 16.43, Overvalued between 24.50 and 28.53, and Strongly Overvalued above 28.53. The current Forward P/OCF of 16.96 falls within the Historic Trend Line -Fairly Valued range.
13.32
P/FCF
Arthur J. Gallagher & Co.. (AJG) has a current P/FCF of 13.32. The 5-year average P/FCF is 18.88. The thresholds are as follows: Strongly Undervalued below 7.43, Undervalued between 7.43 and 13.15, Fairly Valued between 24.61 and 13.15, Overvalued between 24.61 and 30.34, and Strongly Overvalued above 30.34. The current Forward P/FCF of 13.32 falls within the Historic Trend Line -Fairly Valued range.
Arthur J. Gallagher & Co. (AJG) has a current Price-to-Book (P/B) ratio of 2.72. Compared to its 3-year average P/B ratio of 4.48 , the current P/B ratio is approximately -39.37% higher. Relative to its 5-year average P/B ratio of 4.28, the current P/B ratio is about -36.56% higher. Arthur J. Gallagher & Co. (AJG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.19%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.85% , the current FCF yield is about -100.00% lower.
2.72
P/B
Median3y
4.48
Median5y
4.28
2.80
FCF Yield
Median3y
3.19
Median5y
3.85
Competitors Valuation Multiple
The average P/S ratio for AJG's competitors is , providing a benchmark for relative valuation. Arthur J. Gallagher & Co. Corp (AJG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 19.91%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AJG decreased by 13.54% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.81B to 3.37B.
The secondary factor is the P/E Change, contributed -6.10%to the performance.
Overall, the performance of AJG in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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