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

As of today, Arthur J Gallagher & Co's current share price is $38.49. Arthur J Gallagher & Co's E10 for the quarter that ended in Sep. 2015 was $1.60. Arthur J Gallagher & Co's Shiller P/E Ratio for today is 24.06.

AJG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 11.53   Max: 33.77
Current: 24

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 22.09.

AJG's Shiller P/E Ratio is ranked lower than
65% of the 110 Companies
in the Global Insurance Brokers industry.

( Industry Median: 20.65 vs. AJG: 24.00 )

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 Sep. 2015 was $0.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.60 for the trailing ten years ended in Sep. 2015.


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
=38.49/1.60
=24.06

* 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 Dec14 is calculated as:

For example, Arthur J Gallagher & Co's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.75/237.945*237.945
=0.750

Current CPI (Sep. 2015) = 237.945.

Arthur J Gallagher & Co Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 0.5700.4500.3600.7000.5800.3000.1300.8100.7500.350
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 0.5790.4590.3630.6990.5800.3040.1310.8080.7500.352
201103201106201109201112201203201206201209201212201303201306
per share eps 0.1400.3700.4100.3500.2400.5900.5000.2600.3200.730
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 0.1490.3900.4300.3690.2490.6120.5140.2690.3270.744
200809200812200903200906200909200912201003201006201009201012
per share eps 0.4000.0400.2700.4400.4100.1600.2800.4200.4400.520
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.4350.0450.3020.4850.4520.1760.3060.4580.4790.565
200603200606200609200612200703200706200709200712200803200806
per share eps 0.1700.3700.5100.2500.2000.4400.5400.250-0.0700.440
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 0.2020.4340.5980.2950.2320.5020.6160.283-0.0780.478

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 23.1917.6419.2316.0920.0923.2723.9731.6532.600.00

Arthur J Gallagher & Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 29.0031.6532.1130.9530.4032.6029.9529.7225.740.00
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)

GuruFocus Premium Plus Membership

FEEDBACK