GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Arthur J. Gallagher & Co (BSP:A1JG34) » Definitions » Cyclically Adjusted PB Ratio

Arthur J. Gallagher (BSP:A1JG34) Cyclically Adjusted PB Ratio : 7.03 (As of Apr. 29, 2024)


View and export this data going back to 2020. Start your Free Trial

What is Arthur J. Gallagher Cyclically Adjusted PB Ratio?

As of today (2024-04-29), Arthur J. Gallagher's current share price is R$601.00. Arthur J. Gallagher's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was R$85.52. Arthur J. Gallagher's Cyclically Adjusted PB Ratio for today is 7.03.

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

BSP:A1JG34' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.01   Med: 4.54   Max: 7.65
Current: 6.95

During the past years, Arthur J. Gallagher's highest Cyclically Adjusted PB Ratio was 7.65. The lowest was 3.01. And the median was 4.54.

BSP:A1JG34's Cyclically Adjusted PB Ratio is ranked worse than
94.67% of 413 companies
in the Insurance industry
Industry Median: 1.15 vs BSP:A1JG34: 6.95

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Arthur J. Gallagher's adjusted book value per share data for the three months ended in Dec. 2023 was R$121.820. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$85.52 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arthur J. Gallagher Cyclically Adjusted PB Ratio Historical Data

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

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.96 5.82 6.67 6.35 6.68

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 PB 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 6.18 6.85 6.90 6.68 -

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

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

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

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



Arthur J. Gallagher Cyclically Adjusted PB Ratio Calculation

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

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

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=601.00/85.52
=7.03

* 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 Book per Share for the quarter that ended in Dec. 2023 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=121.82/129.4194*129.4194
=121.820

Current CPI (Dec. 2023) = 129.4194.

Arthur J. Gallagher Quarterly Data

Book Value per Share CPI Adj_Book
201403 18.451 99.695 23.952
201406 22.850 100.560 29.408
201409 23.586 100.428 30.395
201412 25.917 99.070 33.857
201503 29.643 99.621 38.510
201506 32.433 100.684 41.689
201509 40.341 100.392 52.005
201512 39.908 99.792 51.756
201603 37.549 100.470 48.368
201606 34.807 101.688 44.299
201609 33.699 101.861 42.816
201612 33.828 101.863 42.979
201703 31.904 102.862 40.141
201706 35.162 103.349 44.032
201709 35.605 104.136 44.250
201712 38.553 104.011 47.971
201803 40.646 105.290 49.961
201806 45.881 106.317 55.851
201809 50.835 106.507 61.771
201812 47.476 105.998 57.966
201903 50.590 107.251 61.047
201906 50.555 108.070 60.543
201909 53.484 108.329 63.896
201912 56.249 108.420 67.144
202003 64.801 108.902 77.010
202006 74.365 108.767 88.485
202009 81.029 109.815 95.495
202012 82.153 109.897 96.747
202103 96.817 111.754 112.121
202106 101.089 114.631 114.130
202109 107.224 115.734 119.903
202112 115.382 117.630 126.947
202203 106.477 121.301 113.603
202206 105.697 125.017 109.419
202209 106.615 125.227 110.185
202212 113.171 125.222 116.965
202303 119.342 127.348 121.283
202306 117.068 128.729 117.696
202309 119.670 129.860 119.264
202312 121.820 129.419 121.820

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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  (BSP:A1JG34) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Arthur J. Gallagher Cyclically Adjusted PB Ratio Related Terms

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


Arthur J. Gallagher (BSP:A1JG34) 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 (BSP:A1JG34) Headlines

No Headlines