Switch to:
GuruFocus has detected 10 Warning Signs with Arthur J. Gallagher & Co $AJG.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Arthur J. Gallagher & Co (NYSE:AJG)
EV/EBITDA
15.00 (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 $11,686 Mil. Arthur J. Gallagher & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $779 Mil. Therefore, Arthur J. Gallagher & Co's EV/EBITDA ratio for today is 15.00.

AJG' s EV/EBITDA Range Over the Past 10 Years
Min: 6.8   Max: 16
Current: 15.02

6.8
16

During the past 13 years, the highest EV/EBITDA Ratio of Arthur J. Gallagher & Co was 16.00. The lowest was 6.80. And the median was 11.55.

AJG's EV/EBITDA is ranked lower than
54% of the 467 Companies
in the Global Insurance Brokers industry.

( Industry Median: 13.74 vs. AJG: 15.02 )

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 $52.84. Arthur J. Gallagher & Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $2.13. Therefore, Arthur J. Gallagher & Co's P/E Ratio for today is 24.81.

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)
=11686.401/779.1
=15.00

Arthur J. Gallagher & Co's current Enterprise Value is $11,686 Mil.
Arthur J. Gallagher & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 148 (Dec. 2015 ) + 165.5 (Mar. 2016 ) + 253.3 (Jun. 2016 ) + 212.3 (Sep. 2016 ) = $779 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=52.84/2.13
=24.81

Arthur J. Gallagher & Co's share price for today is $52.84.
Arthur J. Gallagher & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.34 (Dec. 2015 ) + 0.26 (Mar. 2016 ) + 0.84 (Jun. 2016 ) + 0.69 (Sep. 2016 ) = $2.13.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 15.1714.7515.4915.3114.9913.1712.6813.1413.8514.58
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