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Arthur J. Gallagher & Co (NYSE:AJG)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
3.27 (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 22.57. Arthur J. Gallagher & Co's 5-year average EBITDA growth rate is 6.90%. Therefore, Arthur J. Gallagher & Co's PEG for today is 3.27.

AJG' s PEG Range Over the Past 10 Years
Min: 0.81   Max: 130.46
Current: 3.2

0.81
130.46

During the past 13 years, Arthur J. Gallagher & Co's highest PEG was 130.46. The lowest was 0.81. And the median was 3.57.

AJG's PEG is ranked lower than
80% of the 131 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.86 vs. AJG: 3.20 )

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)
=22.568627451/6.90
=3.27

* 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 0.00117.773.650.911.246.6213.974.423.252.42

Arthur J. Gallagher & Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
peg 5.534.424.053.573.133.253.503.162.502.42
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