GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Arthur J. Gallagher & Co (NYSE:AJG) » Definitions » Shiller PE Ratio

Arthur J. Gallagher (Arthur J. Gallagher) Shiller PE Ratio

: 59.38 (As of Today)
View and export this data going back to 1987. Start your Free Trial

As of today (2024-04-23), Arthur J. Gallagher's current share price is $237.52. Arthur J. Gallagher's E10 for the quarter that ended in Dec. 2023 was $4.00. Arthur J. Gallagher's Shiller PE Ratio for today is 59.38.

The historical rank and industry rank for Arthur J. Gallagher's Shiller PE Ratio or its related term are showing as below:

AJG' s Shiller PE Ratio Range Over the Past 10 Years
Min: 23.07   Med: 34.61   Max: 63.29
Current: 59.38

During the past years, Arthur J. Gallagher's highest Shiller PE Ratio was 63.29. The lowest was 23.07. And the median was 34.61.

AJG's Shiller PE Ratio is ranked worse than
93.89% of 360 companies
in the Insurance industry
Industry Median: 13.005 vs AJG: 59.38

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

Arthur J. Gallagher's adjusted earnings per share data for the three months ended in Dec. 2023 was $-0.150. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.00 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arthur J. Gallagher Shiller PE Ratio Historical Data

The historical data trend for Arthur J. Gallagher's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.27 46.09 53.50 51.00 56.27

Arthur J. Gallagher Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 51.00 48.53 54.94 55.80 56.27

Competitive Comparison

For the Insurance Brokers subindustry, Arthur J. Gallagher's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arthur J. Gallagher Shiller PE Ratio Distribution

For the Insurance industry and Financial Services sector, Arthur J. Gallagher's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Arthur J. Gallagher's Shiller PE Ratio falls into.



Arthur J. Gallagher Shiller PE Ratio Calculation

For Shiller PE Ratio, 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 PE Ratio is also called PE10.

The Shiller PE Ratio 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's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=237.52/4
=59.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arthur J. Gallagher's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Arthur J. Gallagher's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-0.15/129.4194*129.4194
=-0.150

Current CPI (Dec. 2023) = 129.4194.

Arthur J. Gallagher Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.360 99.695 0.467
201406 0.700 100.560 0.901
201409 0.580 100.428 0.747
201412 0.310 99.070 0.405
201503 0.130 99.621 0.169
201506 0.810 100.684 1.041
201509 0.750 100.392 0.967
201512 0.350 99.792 0.454
201603 0.260 100.470 0.335
201606 0.840 101.688 1.069
201609 0.690 101.861 0.877
201612 0.530 101.863 0.673
201703 1.270 102.862 1.598
201706 0.390 103.349 0.488
201709 0.610 104.136 0.758
201712 0.570 104.011 0.709
201803 1.480 105.290 1.819
201806 0.620 106.317 0.755
201809 0.680 106.507 0.826
201812 0.630 105.998 0.769
201903 1.770 107.251 2.136
201906 0.580 108.070 0.695
201909 0.660 108.329 0.788
201912 0.510 108.420 0.609
202003 1.790 108.902 2.127
202006 0.790 108.767 0.940
202009 0.900 109.815 1.061
202012 0.720 109.897 0.848
202103 1.920 111.754 2.223
202106 0.920 114.631 1.039
202109 1.060 115.734 1.185
202112 0.510 117.630 0.561
202203 2.050 121.301 2.187
202206 1.330 125.017 1.377
202209 1.190 125.227 1.230
202212 0.630 125.222 0.651
202303 2.240 127.348 2.276
202306 1.070 128.729 1.076
202309 1.280 129.860 1.276
202312 -0.150 129.419 -0.150

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

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Arthur J. Gallagher  (NYSE:AJG) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio 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 PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio 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, Shiller PE Ratio and PS Ratio will give false valuations.


Arthur J. Gallagher Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Arthur J. Gallagher's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Arthur J. Gallagher (Arthur J. Gallagher) Business Description

Traded in Other Exchanges
Address
2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050
Arthur J. Gallagher & Co provides insurance brokerage and consulting services to middle-market entities around the world. The majority of the company's revenue comes from its brokerage segment, where it negotiates and places its customers with insurance companies that provide, among other types, property/casualty and health insurance. The company's primary source of revenue in the brokerage segment is commissioning from the insurance companies. The company also generates significant revenue in its corporate segment, which includes clean energy investment and other investment income. The company generates most of its revenue in the United States, with the remaining revenue coming primarily from Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.
Executives
Douglas K Howell officer: Vice President and Chief ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William F Ziebell officer: VICE PRESIDENT 2 PIERCE PLACE, ITASCA IL 60143
Christopher E Mead officer: VICE PRESIDENT 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Joel D Cavaness officer: Vice President 2 PIERCE PLACE, ITASCA IL 60143
David S Johnson director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Walter D. Bay officer: VICE PRESIDENT, SECRETARY AND 1011 ELM STREET, WINNETKA IL 60093
Richard C Cary officer: Controller C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Sherry S Barrat director C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Susan E Mcgrath other: Vice President C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Kay W Mccurdy director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Patrick Murphy Gallagher officer: Vice President 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Scott R Hudson officer: CORPORATE VP C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William L Bax director TWO PIERCE PLACE, C/O ARTHUR J. GALLAGHER & CO., ITASCA IL 60143
Mark H. Bloom officer: Vice President 8200 JONES BRANCH DRIVE, MCLEAN VA 22102
Gallagher J Patrick Jr director, officer: President & CEO C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143