Is Arthur J. Gallagher & Co. (AJG) Undervalued?
Based on the current stock price of $261.48 and a P/E ratio of 41.84,Arthur J. Gallagher & Co. has a PEG ratio of 6.42.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 6.42, AJG appears to be potentially overvalued relative to its growth rate of 6.52%.
Based on a PEG ratio of 5.57 (adjusted for dividends).
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How we analyzed AJG
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 41.84and dividing it by the annual growth rate of 6.52%.
PEG = 41.84 (P/E) ÷ 6.52 (Growth) = 6.42
Frequently Asked Questions about AJG
What is the current PEG Ratio for Arthur J. Gallagher & Co. (AJG)?+
The current PEG Ratio for Arthur J. Gallagher & Co. is 6.42. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AJG stock undervalued right now?+
Based on the PEG ratio of 6.42, Arthur J. Gallagher & Co. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AJG?+
The PEGY ratio for Arthur J. Gallagher & Co. is 5.57. This metric accounts for dividend yield (0.99%), providing a more complete valuation picture.