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Arthur J Gallagher & Co (NYSE:AJG)
EV/EBITDA
14.30 (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 $9,744 Mil. Arthur J Gallagher & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $682 Mil. Therefore, Arthur J Gallagher & Co's EV/EBITDA ratio for today is 14.30.

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 $43.66. Arthur J Gallagher & Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $1.83. Therefore, Arthur J Gallagher & Co's P/E Ratio for today is 23.81.

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)
=9743.530/681.6
=14.30

Arthur J Gallagher & Co's current Enterprise Value is $9,744 Mil.
Arthur J Gallagher & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 186.5 (Sep. 2014 ) + 125.6 (Dec. 2014 ) + 132.7 (Mar. 2015 ) + 236.8 (Jun. 2015 ) = $682 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)
=43.66/1.834
=23.81

Arthur J Gallagher & Co's share price for today is $43.66.
Arthur J Gallagher & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.58 (Sep. 2014 ) + 0.314 (Dec. 2014 ) + 0.13 (Mar. 2015 ) + 0.81 (Jun. 2015 ) = $1.83.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 33.3912.007.4510.678.1510.4411.6311.4414.7615.64

Arthur J Gallagher & Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 12.9013.5413.5014.7614.2215.6115.3315.6415.5715.23
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