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Arthur J. Gallagher (Arthur J. Gallagher) Price-to-Free-Cash-Flow

: 28.47 (As of Today)
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As of today (2024-04-23), Arthur J. Gallagher's share price is $238.115. Arthur J. Gallagher's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $8.37. Hence, Arthur J. Gallagher's Price-to-Free-Cash-Flow Ratio for today is 28.47.

The historical rank and industry rank for Arthur J. Gallagher's Price-to-Free-Cash-Flow or its related term are showing as below:

AJG' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 11.27   Med: 20.11   Max: 59.1
Current: 28.47

During the past 13 years, Arthur J. Gallagher's highest Price-to-Free-Cash-Flow Ratio was 59.10. The lowest was 11.27. And the median was 20.11.

AJG's Price-to-Free-Cash-Flow is ranked worse than
85.04% of 341 companies
in the Insurance industry
Industry Median: 8.7 vs AJG: 28.47

Arthur J. Gallagher's Free Cash Flow per Share for the three months ended in Dec. 2023 was $2.93. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in was $8.37.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Arthur J. Gallagher was 49.10% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -1.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 12.50% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 14.70% per year.

During the past 13 years, Arthur J. Gallagher's highest 3-Year average Free Cash Flow per Share Growth Rate was 36.70% per year. The lowest was -30.60% per year. And the median was 11.00% per year.


Arthur J. Gallagher Price-to-Free-Cash-Flow Historical Data

The historical data trend for Arthur J. Gallagher's Price-to-Free-Cash-Flow 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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Price-to-Free-Cash-Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.20 14.13 27.83 33.53 26.83

Arthur J. Gallagher Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Price-to-Free-Cash-Flow 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 Premium Member Only Premium Member Only Premium Member Only 33.53 28.95 31.37 28.31 26.83

Competitive Comparison

For the Insurance Brokers subindustry, Arthur J. Gallagher's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution

For the Insurance industry and Financial Services sector, Arthur J. Gallagher's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Arthur J. Gallagher's Price-to-Free-Cash-Flow falls into.



Arthur J. Gallagher Price-to-Free-Cash-Flow Calculation

Arthur J. Gallagher's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/ Free Cash Flow per Share (TTM)
=238.115/8.365
=28.47

Arthur J. Gallagher's Share Price of today is $238.115.
Arthur J. Gallagher's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $8.37.

* 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:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Arthur J. Gallagher  (NYSE:AJG) Price-to-Free-Cash-Flow Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Arthur J. Gallagher Price-to-Free-Cash-Flow Related Terms

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


Arthur J. Gallagher (Arthur J. Gallagher) 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.
Executives
Douglas K Howell officer: Vice President and Chief ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William F Ziebell officer: VICE PRESIDENT 2 PIERCE PLACE, ITASCA IL 60143
Christopher E Mead officer: VICE PRESIDENT 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Joel D Cavaness officer: Vice President 2 PIERCE PLACE, ITASCA IL 60143
David S Johnson director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Walter D. Bay officer: VICE PRESIDENT, SECRETARY AND 1011 ELM STREET, WINNETKA IL 60093
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
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
Patrick Murphy Gallagher 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
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
Gallagher J Patrick Jr director, officer: President & CEO C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143