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Arthur J. Gallagher & Co (NYSE:AJG)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
3.42 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Arthur J. Gallagher & Co's P/E (NRI) Ratio is 22.21. Arthur J. Gallagher & Co's 5-year average EBITDA growth rate is 6.50%. Therefore, Arthur J. Gallagher & Co's PEG for today is 3.42.

AJG' s PEG Range Over the Past 10 Years
Min: 0.81   Max: 141.33
Current: 3.38

0.81
141.33

During the past 13 years, Arthur J. Gallagher & Co's highest PEG was 141.33. The lowest was 0.81. And the median was 3.56.

AJG's PEG is ranked lower than
84% of the 140 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.06 vs. AJG: 3.38 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Arthur J. Gallagher & Co's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=22.2119815668/6.50
=3.42

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


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


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
peg 0.00127.583.650.901.246.6213.884.413.252.42

Arthur J. Gallagher & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
peg 4.414.043.573.133.253.503.172.502.422.47
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