Arthur J. Gallagher & Co. (AJG) Valuation — DCF, Graham & Comparables

Arthur J. Gallagher & Co. (AJG) — Price $243.78 Financial ServicesInsurance - Brokers — NYSE

Latest reported results:

Valuation dashboard for Arthur J. Gallagher & Co. (AJG) with P/E 40.26, P/B 2.66, EV/EBITDA 16.56 and dividend yield 1.12%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Financial Services companies.

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.

Analysis Summary

Arthur J. Gallagher & Co. reported revenue of $13.94B in the most recent fiscal year, growing at a 5-year CAGR of 14.7%. Net income reached $1.49B, with a 12.8% 5-year CAGR.

Trailing-twelve-month margins: gross margin 74.6%, operating margin 17.0%, net margin 10.0%.

At the current price of $243.78, AJG trades at a P/E of 40.26 and an ROE of 6.67%. Market capitalisation stands at $62.6B, placing it among large-cap names.

Balance sheet quality for AJG: current ratio of 1.1. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio40.26
Price / Book2.66
EV / EBITDA16.56
Dividend Yield1.12%

Valuation Models

DCF Fair Value$343.77
vs Current Price+41.0%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
AJGArthur J. Gallagher & Co.$62.6B40.262.666.7%
PYPLPayPal Holdings, Inc.$46.0B10.002.4124.4%
HDBHDFC Bank Limited$119.7B13.921.82
SMFGSumitomo Mitsui Financial Group, Inc.$101.9B15.481.6310.9%
AONAon plc$63.8B16.616.7042.6%
TRVThe Travelers Companies, Inc.$76.7B9.972.4025.6%
MFCManulife Financial Corporation$71.7B16.501.9213.0%
AFLAflac Incorporated$59.5B12.491.9416.4%

Price

Price$243.78
Market Cap$62.6B
ExchangeNYSE
CountryUS

Profitability

Return on Equity6.67%
Return on Invested Capital5.30%
Return on Assets1.92%
Gross Margin74.55%
Operating Margin17.03%
Net Margin9.96%

Related companies: AFL · AON · HDB · MFC · MMC · PYPL · SMFG

Explore sector: Financial Services · Insurance - Brokers

More sections of AJG: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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