Switch to:
Arthur J. Gallagher & Co (NYSE:AJG)
Shiller P/E Ratio
27.31 (As of Today)

As of today, Arthur J. Gallagher & Co's current share price is $45.34. Arthur J. Gallagher & Co's E10 for the quarter that ended in Mar. 2016 was $1.66. Arthur J. Gallagher & Co's Shiller P/E Ratio for today is 27.31.

AJG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 11.53   Max: 33.77
Current: 27.37

11.53
33.77

During the past 13 years, Arthur J. Gallagher & Co's highest Shiller P/E Ratio was 33.77. The lowest was 11.53. And the median was 22.20.

AJG's Shiller P/E Ratio is ranked lower than
69% of the 84 Companies
in the Global Insurance Brokers industry.

( Industry Median: 21.98 vs. AJG: 27.37 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Arthur J. Gallagher & Co's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.66 for the trailing ten years ended in Mar. 2016.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Arthur J. Gallagher & Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=45.34/1.66
=27.31

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Arthur J. Gallagher & Co's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Arthur J. Gallagher & Co's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.26/238.132*238.132
=0.260

Current CPI (Mar. 2016) = 238.132.

Arthur J. Gallagher & Co Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.4470.3600.7000.5800.3140.1300.8100.7500.3510.260
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.4570.3630.6990.5800.3180.1310.8080.7510.3530.260
201106201109201112201203201206201209201212201303201306201309
per share eps 0.3700.4100.3520.2400.5900.5000.2650.3200.7300.570
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.3900.4300.3710.2490.6120.5150.2750.3270.7440.580
200812200903200906200909200912201003201006201009201012201103
per share eps 0.0490.2700.4400.4100.1650.2800.4200.4400.5100.140
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.0560.3020.4860.4520.1820.3060.4590.4800.5540.149
200606200609200612200703200706200709200712200803200806200809
per share eps 0.3700.5100.2500.2000.4400.5400.247-0.0700.4400.400
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.4340.5990.2950.2320.5030.6170.280-0.0780.4790.435

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Arthur J. Gallagher & Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 23.1817.6419.2116.0720.0623.0523.9731.6732.6025.27

Arthur J. Gallagher & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 31.6732.1330.9830.4232.6029.9629.7325.7425.2726.82
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK