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Arthur J. Gallagher (MEX:AJG) E10 : MXN92.30 (As of Dec. 2024)


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What is Arthur J. Gallagher E10?

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's adjusted earnings per share data for the three months ended in Dec. 2024 was MXN23.358. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN92.30 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Arthur J. Gallagher's average E10 Growth Rate was 12.80% per year. During the past 3 years, the average E10 Growth Rate was 12.50% per year. During the past 5 years, the average E10 Growth Rate was 13.60% per year. During the past 10 years, the average E10 Growth Rate was 12.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Arthur J. Gallagher was 15.00% per year. The lowest was 0.70% per year. And the median was 8.70% per year.

As of today (2025-03-17), Arthur J. Gallagher's current stock price is MXN6520.98. Arthur J. Gallagher's E10 for the quarter that ended in Dec. 2024 was MXN92.30. Arthur J. Gallagher's Shiller PE Ratio of today is 70.65.

During the past 13 years, the highest Shiller PE Ratio of Arthur J. Gallagher was 74.89. The lowest was 23.07. And the median was 38.80.


Arthur J. Gallagher E10 Historical Data

The historical data trend for Arthur J. Gallagher's E10 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 E10 Chart

Arthur J. Gallagher Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.47 51.65 72.90 68.27 92.30

Arthur J. Gallagher Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 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 68.27 70.17 68.60 64.24 92.30

Competitive Comparison of Arthur J. Gallagher's E10

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's Shiller PE Ratio Distribution in the Insurance Industry

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 E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get 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.

For example, Arthur J. Gallagher's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=23.358/133.1571*133.1571
=23.358

Current CPI (Dec. 2024) = 133.1571.

Arthur J. Gallagher Quarterly Data

per share eps CPI Adj_EPS
201503 1.982 99.621 2.649
201506 12.709 100.684 16.808
201509 12.674 100.392 16.811
201512 6.018 99.792 8.030
201603 4.476 100.470 5.932
201606 15.535 101.688 20.343
201609 13.341 101.861 17.440
201612 10.927 101.863 14.284
201703 23.913 102.862 30.956
201706 7.050 103.349 9.083
201709 11.070 104.136 14.155
201712 11.195 104.011 14.332
201803 26.888 105.290 34.005
201806 12.183 106.317 15.259
201809 12.719 106.507 15.902
201812 12.370 105.998 15.539
201903 34.334 107.251 42.627
201906 11.141 108.070 13.727
201909 13.030 108.329 16.016
201912 9.619 108.420 11.814
202003 41.972 108.902 51.320
202006 18.235 108.767 22.324
202009 19.882 109.815 24.108
202012 14.322 109.897 17.353
202103 39.247 111.754 46.763
202106 18.314 114.631 21.274
202109 21.796 115.734 25.077
202112 10.462 117.630 11.843
202203 40.818 121.301 44.808
202206 26.757 125.017 28.499
202209 23.937 125.227 25.453
202212 12.282 125.222 13.060
202303 40.376 127.348 42.218
202306 18.344 128.729 18.975
202309 22.296 129.860 22.862
202312 -2.546 129.419 -2.620
202403 45.474 131.776 45.951
202406 23.267 132.554 23.373
202409 27.370 133.029 27.396
202412 23.358 133.157 23.358

Add all the adjusted EPS together and divide 10 will get our e10.


Arthur J. Gallagher  (MEX:AJG) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=6520.98/92.30
=70.65

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Arthur J. Gallagher was 74.89. The lowest was 23.07. And the median was 38.80.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Arthur J. Gallagher E10 Related Terms

Thank you for viewing the detailed overview of Arthur J. Gallagher's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Arthur J. Gallagher Business Description

Traded in Other Exchanges
Address
2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050
Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. The company's risk management segment provides third-party claims adjustment to companies that choose to self-insure. Gallagher has 52,000 employees and generates 36% of its revenue internationally, primarily in Australia, Canada, New Zealand, and the UK.