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Arthur J Gallagher & Co (NYSE:AJG)
EV/EBITDA
12.33 (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 $8,736 Mil. Arthur J Gallagher & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $709 Mil. Therefore, Arthur J Gallagher & Co's EV/EBITDA ratio for today is 12.33.

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 $45.23. Arthur J Gallagher & Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.08. Therefore, Arthur J Gallagher & Co's P/E Ratio for today is 21.80.

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)
=8736.195/708.7
=12.33

Arthur J Gallagher & Co's current Enterprise Value is $8,736 Mil.
Arthur J Gallagher & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 143.7 (Sep. 2013 ) + 113.5 (Dec. 2013 ) + 115.4 (Mar. 2014 ) + 336.1 (Jun. 2014 ) = $709 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)
=45.23/2.077
=21.78

Arthur J Gallagher & Co's share price for today is $45.23.
Arthur J Gallagher & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.57 (Sep. 2013 ) + 0.447 (Dec. 2013 ) + 0.36 (Mar. 2014 ) + 0.7 (Jun. 2014 ) = $2.08.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.4633.3912.007.5710.678.1510.4411.6311.4414.57

Arthur J Gallagher & Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 12.2611.3011.4111.4412.9013.5413.5014.5714.4512.46
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