Arthur J. Gallagher & Co. (AJG) is a publicly traded company in the Financial Services — Insurance - Brokers industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Arthur J. Gallagher & Co., alongside its various subsidiaries, operates globally, providing a wide array of services that encompass insurance brokerage, expert consulting, and outsourced claims settlement and administration. Its geographic reach extends across the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. The company's business model is divided into two primary segments: Brokerage and Risk Management.
Is Arthur J. Gallagher & Co. stock overvalued or undervalued in 2026?
Arthur J. Gallagher & Co. (AJG) trades at 42.6× earnings (P/E), against a median of 12.9× across the 321 financial services companies above $2bn in Kaplio's universe. At Kaplio's cap P/B for its ROE 7.2 % (0.9×) $84 (-70 %); at its peers' median (6.7×) $624 (+124 %).
Kaplio overview: Arthur J. Gallagher & Co.
Market cap $71B · 52 weeks $192 – $279 (0 % below the high) · P/E 42.6× · 2027 est. P/E 18.8× · Dividend 0.99 % · ≥ 11 years rising · Next earnings January 28, 2027 · expected EPS $2.81 · Closing price, Nov 2 · accounts published Oct 29.
- Valuation: P/B 3.0× (expensive).
- Business: 5-year op. margin 18.5 % (excellent).
- Balance sheet: Debt/Equity 0.06 (solid).
- Earnings: 6 of 8 (on track).
What would it be worth at its usual multiples?
At Kaplio's cap P/B for its ROE 7.2 % (0.9×) $84 (-70 %); at its peers' median (6.7×) $624 (+124 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in insurance: 4 of 5 pass
- P/B (Price / Book) 3.0×, fails.
- Op Margin 5y (Combined Ratio proxy) 18.5 %, passes.
- Book Value / Share growth 22.4 %, passes.
- Debt / Equity 0.06, passes.
- Dividend growth streak 11 years, passes, near the threshold.
Against its peers (reference peers) — Arthur J. Gallagher & Co.: P/E 42.6×; P/B 3.0×; ROE 7.2 %; $71.5B. Aon plc (P/E 18.2×; P/B 7.0×; ROE 40.4 %; $70.7B), Marsh & McLennan Companies, Inc. (P/E 24.6×; P/B 6.7×; ROE 27.1 %; $98.0B), Willis Towers Watson Public Limited Company (P/E 19.9×; P/B 3.9×; ROE 19.9 %; $30.0B).
Expensive or cheap against its last ten fiscal years?
P/B at each close: today 3.0× · median 3.7× · minimum 2.1× · maximum 6.7× · cheap below 3.1× · expensive above 4.9×. It has been cheaper than today only 23% of the time over its last ten fiscal years.
Dividend
solid · Yield 0.99 % ($2.56 per share in 2025) · Years raising it ≥ 11 · 5-year growth +7 % a year · Free cash flow coverage payout 45 % · With $1,000 invested today you'd collect $9.90 a year ($0.83 a month).
Kaplio's reading: Arthur J. Gallagher & Co.
Updated on October 30, 2026 · accounts published on October 29, 2026
Reading of October 29, 2026: A fast-growing, lightly indebted insurance business whose returns on equity remain thin
Arthur J. Gallagher trades at a P/E of 44.4 over the last 12 months, 241 % above its sector median, while revenue grew 21 %.
- Is Arthur J. Gallagher expensive or cheap? At 2.8× book with a 6.7 % ROE it fails the insurance test, and its P/E is 29 % above its ten-year median.
- How is the business doing? Revenue grew 21 % over the last 12 months, but EPS fell 12 % even with a 17 % operating margin.
- How strong is the balance sheet? Debt is just 0.09 times equity over the last 12 months, and the dividend has risen for 11 straight years through fiscal 2025.
- What to expect from the next earnings? Analysts expect EPS of $2.80 on January 28, 2027; the 2026 EPS consensus slipped 0.5 % in the last 30 days.
- Does it underwrite with discipline and build book value? Book value per share grew 22 % a year in fiscal 2020-2025, nearly three times the 8 % benchmark for insurers.
Is Arthur J. Gallagher expensive or cheap?
Arthur J. Gallagher trades at 2.8× book value over the last 12 months and earns a return on equity of 6.7 %. An insurer that earns less than 8 % on its capital is hard to justify at close to three times book, so the stock fails this test. The P/E points the same way. At 44.4 over the last 12 months it is 29 % above its ten-year median of 34.4, and it has traded lower 82 % of the time in the past decade, within a range of 19.9 to 74.9. The sector median is 13.0, a 241 % premium. The stock sits 1 % below its 52-week high of $271.99.
How is the business doing?
Over the last 12 months revenue rose 21 % and earnings per share fell 12 %, so the growth has not reached shareholders on a per-share basis. Margins do not explain the gap. The 17 % operating margin over the last 12 months is well above the 13 % average for fiscal 2014-2025, though slightly below the 18 % of fiscal 2025. The net margin is 10 %. The weak point is the return on capital: an ROE of 6.7 % over the last 12 months is low for an insurer and sits uneasily with a valuation that assumes much more.
How strong is the balance sheet?
Debt to equity of 0.09 over the last 12 months is far below the 0.3 that counts as prudent in insurance, so leverage is not a concern. Shareholder returns are steady but small. The dividend yields 1.1 % over the last 12 months and has been raised for 11 consecutive fiscal years through 2025, just past the ten-year mark for an insurance aristocrat. The payout was 45 % of fiscal 2025 earnings, which leaves room to keep raising it even though earnings per share have fallen over the last 12 months.
What to expect from the next earnings?
On October 29, 2026, Arthur J. Gallagher reported EPS of $3.00 against $2.99 expected, a 0.3 % beat, and it has beaten EPS estimates in 6 of the last 8 quarters. The next report is due January 28, 2027, with analysts expecting EPS of $2.80. Expectations are drifting slightly lower. Over the last 30 days the 2026 EPS consensus fell 0.5 %, from $13.19 to $13.13 across 14 analysts, and the revenue consensus fell 0.6 %. Of 29 analysts, 19 rate the stock a buy, 9 a hold and 1 a sell. At a P/E of 44.4 there is little room for disappointment.
Does it underwrite with discipline and build book value?
Insurers make money in two ways: by underwriting carefully and by investing the float, which is how Buffett built Berkshire. That is why the sector is judged on margins held over several years, growth in book value and low leverage, rather than on a single year's earnings. Arthur J. Gallagher passes four of the five tests. Its five-year average operating margin is 19 % (fiscal 2021-2025) against a 10 % threshold, book value per share grew 22 % a year in fiscal 2020-2025 against 8 %, debt to equity is 0.09 and the dividend streak is 11 years. It fails on price to book: 2.8× would need a much higher ROE than 6.7 %.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Peter Lynch approve Arthur J. Gallagher & Co. today?
The Lynch Method would wait for a better price for Arthur J. Gallagher & Co.: P/E 42.6 with 6% growth; it asks that the P/E not exceed growth. Business quality: 62 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of November 2, 2026; not investment advice.
Profitability
| Return on Equity | 7.16% |
| Return on Invested Capital | 5.66% |
| Return on Assets | 2.15% |
| Gross Margin | 72.89% |
| Operating Margin | 17.39% |
| Net Margin | 10.38% |
Financial Health
| Debt / Equity | 0.06 |
| Current Ratio | 1.05 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 1.32 |
Price Performance
| 1 month | +22.10% |
| 3 months | +11.29% |
| Year-to-date | +6.68% |
| 1 year | +10.65% |
| 3 years | +13.92% |
| 5 years | +71.14% |
| 10 years | +481.44% |
Dividend History
Paid in the last 12 months: $2.75 per share in 4 payments.
| Date | Amount |
|---|---|
| December 7, 2026 | $0.70 |
| September 8, 2026 | $0.70 |
| June 5, 2026 | $0.70 |
| March 6, 2026 | $0.70 |
| December 5, 2025 | $0.65 |
| September 5, 2025 | $0.65 |
| June 6, 2025 | $0.65 |
| March 7, 2025 | $0.65 |
| December 6, 2024 | $0.60 |
| September 6, 2024 | $0.60 |
Amounts adjusted for stock splits.
Related companies: WTW · MRSH · AON · BRO · RYAN
Explore sector: Financial Services · Insurance - Brokers
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