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Arthur J. Gallagher & Co (NYSE:AJG)
Shiller PE Ratio
32.12 (As of Today)

As of today, Arthur J. Gallagher & Co's current share price is $56.86. Arthur J. Gallagher & Co's E10 for the quarter that ended in Mar. 2017 was $1.77. Arthur J. Gallagher & Co's Shiller P/E Ratio for today is 32.12.

AJG' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.45   Max: 33.77
Current: 32.14

11.45
33.77

During the past 13 years, Arthur J. Gallagher & Co's highest Shiller P/E Ratio was 33.77. The lowest was 11.45. And the median was 23.22.

AJG's Shiller PE Ratio is ranked lower than
69% of the 103 Companies
in the Global Insurance Brokers industry.

( Industry Median: 25.97 vs. AJG: 32.14 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Arthur J. Gallagher & Co's adjusted earnings per share data for the three months ended in Mar. 2017 was $0.310. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.77 for the trailing ten years ended in Mar. 2017.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Arthur J. Gallagher & Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=56.86/1.77
=32.12

* 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's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Arthur J. Gallagher & Co's adjusted earnings per share data for the three months ended in Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=0.31/243.801*243.801
=0.310

Current CPI (Mar. 2017) = 243.801.

Arthur J. Gallagher & Co Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 0.3000.1300.8100.7500.3400.2600.8400.6900.5300.310
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.801
Adj_EPS 0.3110.1340.8280.7680.3500.2660.8500.6970.5350.310
201206201209201212201303201306201309201312201403201406201409
per share eps 0.5900.5000.2600.3200.7300.5700.4500.3600.7000.580
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6270.5270.2760.3350.7620.5930.4710.3710.7160.594
200912201003201006201009201012201103201106201109201112201203
per share eps 0.1600.2800.4200.4400.5100.1400.3700.4100.3500.240
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.1810.3140.4700.4910.5670.1530.4000.4410.3780.255
200706200709200712200803200806200809200812200903200906200909
per share eps 0.4400.5400.250-0.0700.4400.4000.0400.2700.4400.410
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 0.5150.6310.290-0.0800.4900.4460.0460.3090.4970.463

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


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
ShillerPE 17.7319.3316.0520.0623.2623.9731.6832.6425.3030.08

Arthur J. Gallagher & Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 32.6429.9929.7725.7725.3027.1328.0729.8530.0831.95
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