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Arthur J. Gallagher & Co (NYSE:AJG)
EV/EBITDA
14.11 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Arthur J. Gallagher & Co's enterprise value is $10,308 Mil. Arthur J. Gallagher & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $731 Mil. Therefore, Arthur J. Gallagher & Co's EV/EBITDA ratio for today is 14.11.

AJG' s EV/EBITDA Range Over the Past 10 Years
Min: 6.8   Max: 34.6
Current: 13.41

6.8
34.6

During the past 13 years, the highest EV/EBITDA Ratio of Arthur J. Gallagher & Co was 34.60. The lowest was 6.80. And the median was 11.60.

AJG's EV/EBITDA is ranked lower than
55% of the 471 Companies
in the Global Insurance Brokers industry.

( Industry Median: 13.00 vs. AJG: 13.41 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Arthur J. Gallagher & Co's stock price is $46.39. Arthur J. Gallagher & Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2015 was $2.04. Therefore, Arthur J. Gallagher & Co's P/E Ratio for today is 22.73.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Arthur J. Gallagher & Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10307.819/730.7
=14.11

Arthur J. Gallagher & Co's current Enterprise Value is $10,308 Mil.
Arthur J. Gallagher & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was 132.7 (Mar. 2015 ) + 236.8 (Jun. 2015 ) + 213.2 (Sep. 2015 ) + 148 (Dec. 2015 ) = $731 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=46.39/2.041
=22.73

Arthur J. Gallagher & Co's share price for today is $46.39.
Arthur J. Gallagher & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2015 was 0.13 (Mar. 2015 ) + 0.81 (Jun. 2015 ) + 0.75 (Sep. 2015 ) + 0.351 (Dec. 2015 ) = $2.04.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


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
ev2ebitda 12.007.4510.678.1510.4411.6311.4414.2915.4912.68

Arthur J. Gallagher & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 14.2913.7915.1714.7515.4915.3114.9913.1712.680.00
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