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AJG (Arthur J. Gallagher) PEG Ratio : 2.47 (As of Mar. 14, 2025)


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What is Arthur J. Gallagher PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Arthur J. Gallagher's PE Ratio without NRI is 32.07. Arthur J. Gallagher's 5-Year EBITDA growth rate is 13.00%. Therefore, Arthur J. Gallagher's PEG Ratio for today is 2.47.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


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

AJG' s PEG Ratio Range Over the Past 10 Years
Min: 1.41   Med: 2.31   Max: 3.92
Current: 2.47


During the past 13 years, Arthur J. Gallagher's highest PEG Ratio was 3.92. The lowest was 1.41. And the median was 2.31.


AJG's PEG Ratio is ranked worse than
78.06% of 155 companies
in the Insurance industry
Industry Median: 0.9 vs AJG: 2.47

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Arthur J. Gallagher PEG Ratio Historical Data

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

Arthur J. Gallagher Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.83 1.60 1.51 1.96 2.54

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
PEG 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 1.96 2.24 2.35 2.63 2.54

Competitive Comparison of Arthur J. Gallagher's PEG Ratio

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

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

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



Arthur J. Gallagher PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Arthur J. Gallagher's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=32.074950690335/13.00
=2.47

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


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

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Arthur J. Gallagher PEG Ratio Related Terms

Thank you for viewing the detailed overview of Arthur J. Gallagher's PEG 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
Walter D. Bay officer: VICE PRESIDENT, SECRETARY AND 1011 ELM STREET, WINNETKA IL 60093
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
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
Scott R Hudson officer: CORPORATE VP 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
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
Joel D Cavaness officer: Vice President 2 PIERCE PLACE, ITASCA IL 60143
William F Ziebell officer: VICE PRESIDENT 2 PIERCE PLACE, ITASCA IL 60143
Kay W Mccurdy director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Susan E Mcgrath other: Vice President 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