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GuruFocus has detected 9 Warning Signs with Arthur J. Gallagher & Co $AJG.
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Arthur J. Gallagher & Co (NYSE:AJG)
EV-to-EBITDA
15.22 (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 $12,443 Mil. Arthur J. Gallagher & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $818 Mil. Therefore, Arthur J. Gallagher & Co's EV/EBITDA ratio for today is 15.22.

AJG' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.8   Max: 16
Current: 15.22

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 11.60.

AJG's EV-to-EBITDA is ranked lower than
62% of the 635 Companies
in the Global Insurance Brokers industry.

( Industry Median: 12.78 vs. AJG: 15.22 )

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 $56.44. Arthur J. Gallagher & Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $2.32. Therefore, Arthur J. Gallagher & Co's P/E Ratio for today is 24.33.

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)
=12443.043/817.5
=15.22

Arthur J. Gallagher & Co's current Enterprise Value is $12,443 Mil.
Arthur J. Gallagher & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 165.5 (Mar. 2016 ) + 253.3 (Jun. 2016 ) + 212.3 (Sep. 2016 ) + 186.4 (Dec. 2016 ) = $818 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)
=56.44/2.32
=24.33

Arthur J. Gallagher & Co's share price for today is $56.44.
Arthur J. Gallagher & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.26 (Mar. 2016 ) + 0.84 (Jun. 2016 ) + 0.69 (Sep. 2016 ) + 0.53 (Dec. 2016 ) = $2.32.

* 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 7.4510.678.1510.4411.6311.4414.2915.4912.6814.22

Arthur J. Gallagher & Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 14.7515.4915.3114.9913.1712.6813.1413.8514.5814.22
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