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AJG (Arthur J. Gallagher) PB Ratio : 5.13 (As of Dec. 14, 2024)


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What is Arthur J. Gallagher PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-12-14), Arthur J. Gallagher's share price is $284.59. Arthur J. Gallagher's Book Value per Share for the quarter that ended in Sep. 2024 was $55.52. Hence, Arthur J. Gallagher's PB Ratio of today is 5.13.

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

AJG' s PB Ratio Range Over the Past 10 Years
Min: 1.83   Med: 3.45   Max: 5.63
Current: 5.13

During the past 13 years, Arthur J. Gallagher's highest PB Ratio was 5.63. The lowest was 1.83. And the median was 3.45.

AJG's PB Ratio is ranked worse than
91.25% of 480 companies
in the Insurance industry
Industry Median: 1.3 vs AJG: 5.13

During the past 12 months, Arthur J. Gallagher's average Book Value Per Share Growth Rate was 14.60% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 15.90% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 15.90% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 11.60% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Arthur J. Gallagher was 23.90% per year. The lowest was -2.00% per year. And the median was 11.60% per year.

Back to Basics: PB Ratio


Arthur J. Gallagher PB Ratio Historical Data

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

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.47 3.87 4.16 4.37 4.52

Arthur J. Gallagher Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 4.70 4.52 4.83 4.91 5.07

Competitive Comparison of Arthur J. Gallagher's PB Ratio

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

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

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



Arthur J. Gallagher PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Arthur J. Gallagher's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Sep. 2024)
=284.59/55.522
=5.13

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Arthur J. Gallagher  (NYSE:AJG) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Arthur J. Gallagher PB Ratio Related Terms

Thank you for viewing the detailed overview of Arthur J. Gallagher's PB Ratio 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.
Executives
Sherry S Barrat director C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Christopher E Mead officer: VICE PRESIDENT 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Douglas K Howell officer: Vice President and Chief ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Thomas Joseph Gallagher officer: VICE PRESIDENT TWO PIERCE PLACE, ITASCA IL 60143
Walter D. Bay officer: VICE PRESIDENT, SECRETARY AND 1011 ELM STREET, WINNETKA IL 60093
Scott R Hudson officer: CORPORATE VP C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
David S Johnson director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Richard C Cary officer: Controller C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Joel D Cavaness officer: Vice President 2 PIERCE PLACE, ITASCA IL 60143
Patrick Murphy Gallagher officer: Vice President 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
William F Ziebell officer: VICE PRESIDENT 2 PIERCE PLACE, ITASCA IL 60143
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
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