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Arthur J. Gallagher (LTS:0ITL) Cyclically Adjusted PS Ratio : 5.82 (As of May. 21, 2024)


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What is Arthur J. Gallagher Cyclically Adjusted PS Ratio?

As of today (2024-05-21), Arthur J. Gallagher's current share price is $256.865. Arthur J. Gallagher's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was $44.13. Arthur J. Gallagher's Cyclically Adjusted PS Ratio for today is 5.82.

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

LTS:0ITL' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.71   Med: 2.67   Max: 5.93
Current: 5.84

During the past years, Arthur J. Gallagher's highest Cyclically Adjusted PS Ratio was 5.93. The lowest was 1.71. And the median was 2.67.

LTS:0ITL's Cyclically Adjusted PS Ratio is ranked worse than
94.33% of 406 companies
in the Insurance industry
Industry Median: 1.02 vs LTS:0ITL: 5.84

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Arthur J. Gallagher's adjusted revenue per share data for the three months ended in Mar. 2024 was $14.670. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $44.13 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arthur J. Gallagher Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Arthur J. Gallagher's Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio Chart

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 3.83 4.68 4.71 5.26

Arthur J. Gallagher Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial 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 4.64 5.23 5.34 5.26 5.67

Competitive Comparison of Arthur J. Gallagher's Cyclically Adjusted PS Ratio

For the Insurance Brokers subindustry, Arthur J. Gallagher's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

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

* The bar in red indicates where Arthur J. Gallagher's Cyclically Adjusted PS Ratio falls into.



Arthur J. Gallagher Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Arthur J. Gallagher's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=256.865/44.13
=5.82

* 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 Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Arthur J. Gallagher's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=14.67/131.7762*131.7762
=14.670

Current CPI (Mar. 2024) = 131.7762.

Arthur J. Gallagher Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 7.574 100.560 9.925
201409 7.968 100.428 10.455
201412 7.585 99.070 10.089
201503 7.382 99.621 9.765
201506 7.987 100.684 10.453
201509 8.229 100.392 10.802
201512 7.525 99.792 9.937
201603 7.322 100.470 9.603
201606 8.004 101.688 10.372
201609 8.304 101.861 10.743
201612 8.216 101.863 10.629
201703 9.116 102.862 11.678
201706 8.202 103.349 10.458
201709 8.733 104.136 11.051
201712 8.257 104.011 10.461
201803 9.918 105.290 12.413
201806 8.918 106.317 11.054
201809 9.518 106.507 11.776
201812 8.827 105.998 10.974
201903 10.263 107.251 12.610
201906 8.724 108.070 10.638
201909 9.554 108.329 11.622
201912 8.916 108.420 10.837
202003 9.662 108.902 11.691
202006 8.156 108.767 9.881
202009 9.402 109.815 11.282
202012 8.723 109.897 10.460
202103 10.853 111.754 12.797
202106 9.392 114.631 10.797
202109 10.089 115.734 11.487
202112 9.317 117.630 10.438
202203 11.400 121.301 12.384
202206 9.520 125.017 10.035
202209 9.513 125.227 10.011
202212 9.408 125.222 9.900
202303 12.471 127.348 12.905
202306 11.127 128.729 11.390
202309 11.315 129.860 11.482
202312 11.041 129.419 11.242
202403 14.670 131.776 14.670

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

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  (LTS:0ITL) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Arthur J. Gallagher Cyclically Adjusted PS Ratio Related Terms

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Arthur J. Gallagher (LTS:0ITL) 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.

Arthur J. Gallagher (LTS:0ITL) Headlines

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