Is Arthur J. Gallagher & Co. (AJG) undervalued?
Arthur J. Gallagher & Co. trades on a P/E of 43.60 against earnings growth of 3.4% a year over the last 3 years, giving a PEG ratio of 12.77 — above the 2.0 level conventionally read as expensive relative to growth.
Earnings figures are measured from AJG’s filed annual accounts, not estimated. PEG compares price to earnings growth alone — it says nothing about debt, cash generation, or what an acquirer would pay. Read it alongside the figures below rather than on its own.
What it would cost to buy AJG
Enterprise value is not shown for AJG: enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
| Measure | Value |
|---|---|
| Diluted earnings per shareto 2025-12-31 | $5.74 |
| P/E ratioto 2025-12-31 | 43.6 |
| Earnings growth (3-year CAGR)to 2025-12-31 | 3.4% |
| PEG ratioto 2025-12-31 | 12.8 |
| Market capitalisationto 2026-06-30 | $64.15B |
| Total debtto 2026-06-30 | $13.61B |
| Net debtto 2026-06-30 | $12.22B |
| Enterprise value | — |
| EBITDA | — |
| Free cash flowto 2025-12-31 | $1.71B |
| EV / EBITDA | — |
| EV / Sales | — |
| Free cash flow yieldto 2025-12-31 | 2.7% |
| Net debt / EBITDA | — |
| Return on capital employed | — |
Earnings growth is measured across Arthur J. Gallagher & Co.’s own filed annual accounts. PEG conventionally uses forecast growth from analyst estimates; filings contain only history, so this is trailing growth and will read differently from a PEG quoted elsewhere.
Not shown, and why
- Enterprise value
- enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
- EBITDA
- operating income not reported for a full year.
- EV / EBITDA
- enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
- EV / Sales
- enterprise value is not meaningful for banks and insurers, whose debt is an operating input rather than financing.
- Net debt / EBITDA
- operating income not reported for a full year.
- Return on capital employed
- operating income not reported for a full year.
Against the sector
AJG against 5 listed companies sharing its classification — Insurance Agents, Brokers & Service. A multiple means little on its own; the column that matters is the gap. See what insurance brokers trade on.
| Measure | AJG | Sector median | Difference |
|---|---|---|---|
| Free cash flow margin | 12.3% | 18.5% | −6.3% |
Medians are taken across peers where the measure could be computed, so the sample differs by row. Green marks the direction conventionally read as cheaper or stronger — it is a direction, not a recommendation.
Market ratios
Price-based ratios from market data. Anything drawn from a filed statement is in the enterprise-value section above, with its source.
| Metric | Value |
|---|---|
| Price | $250.28 |
| PEGY ratio | — |
| Dividend yield | 1.12% |
| Price / book | — |
| Price / sales | — |
| Return on equity | 6.7% |
| Profit margin | — |
| Operating margin | — |
| Debt / equity | 57.38 |
| Current ratio | — |
| Beta | 0.55 |
| 52-week range | $190.75 – $313.55 |
Not reported for AJG: pegy ratio, price / book, price / sales, profit margin, operating margin, current ratio. A dash means the figure was not available from the source, not that it is zero.
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About AJG’s valuation
- What is the PEG ratio for Arthur J. Gallagher & Co. (AJG)?
- Arthur J. Gallagher & Co. has a PEG ratio of 12.77, from a P/E of 43.60 and earnings growth of 3.4% a year measured across 3 years of filed accounts. That is above the 2.0 level conventionally read as expensive relative to growth. Note that PEG is conventionally quoted against forecast growth; this uses reported history, so it will differ from a PEG you see elsewhere.
- Is AJG undervalued right now?
- That depends on the measure. On PEG, AJG reads 12.77, above the 2.0 level conventionally read as expensive relative to growth. The PEG ratio compares price to earnings growth alone — it ignores debt, cash generation and asset backing, so it is a starting point rather than a conclusion. The enterprise-value measures above account for debt and cash; they often tell a different story.
- What is the PEGY ratio for AJG?
- The PEGY ratio for Arthur J. Gallagher & Co. is —. PEGY adds the dividend yield of 1.12% to the growth rate in the denominator, which gives a fairer reading of companies returning cash as income rather than growth.
- Where do these AJG figures come from?
- Market price and capitalisation come from live market data; earnings, growth and dividend figures come from Arthur J. Gallagher & Co.'s published financial statements. Every derived ratio on this page shows the arithmetic that produced it.
This page describes published financial data. It is not investment advice and makes no recommendation to buy or sell AJG.