Latest Ratios: P/E Ratio 44.3x · EV/EBITDA 21.3x · ROE 6.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $65.4B | $67.4B | $63.6B | $49.3B | $40.5B | $35.2B | $24.1B | $18.1B | $13.7B | $11.5B | $9.3B |
| Enterprise Value | $78.0B | $80.0B | $62.1B | $56.7B | $46.2B | $41.4B | $28.3B | $22.4B | $16.7B | $14.0B | $11.6B |
| P/E Ratio → | 44.29 | 45.01 | 43.47 | 50.88 | 36.33 | 38.83 | 29.45 | 27.05 | 21.68 | 24.91 | 22.40 |
| P/S Ratio | 4.69 | 4.83 | 5.50 | 4.90 | 4.73 | 4.28 | 3.44 | 2.54 | 1.98 | 1.85 | 1.63 |
| P/B Ratio | 2.84 | 2.89 | 3.15 | 4.56 | 4.40 | 4.11 | 3.87 | 3.47 | 3.00 | 2.77 | 2.54 |
| P/FCF | 36.66 | 37.74 | 26.04 | 26.83 | 33.53 | 22.32 | 14.59 | 18.47 | 21.41 | 15.90 | 22.93 |
| P/OCF | 33.90 | 34.91 | 24.61 | 24.27 | 29.12 | 20.64 | 13.77 | 16.18 | 17.93 | 13.49 | 14.90 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.74 | 5.37 | 5.63 | 5.40 | 5.04 | 4.04 | 3.15 | 2.42 | 2.24 | 2.04 |
| EV / EBITDA | 21.26 | 21.78 | 19.86 | 22.17 | 20.36 | 21.73 | 17.67 | 18.39 | 16.14 | 15.58 | 14.00 |
| EV / EBIT | 30.62 | 31.50 | 27.50 | 38.24 | 29.14 | 34.43 | 26.54 | 27.85 | 27.07 | 28.88 | 26.10 |
| EV / FCF | — | 44.81 | 25.42 | 30.83 | 38.23 | 26.25 | 17.13 | 22.89 | 26.10 | 19.28 | 28.62 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.8% | 54.8% | 42.2% | 42.1% | 42.1% | 36.2% | 35.8% | 32.1% | 28.0% | 27.6% | 28.2% |
| Operating Margin | 18.3% | 18.3% | 19.8% | 18.5% | 19.5% | 16.3% | 14.8% | 10.5% | 8.9% | 8.2% | 8.4% |
| Net Profit Margin | 10.7% | 10.7% | 12.7% | 9.6% | 13.0% | 11.0% | 11.7% | 9.4% | 9.1% | 7.7% | 7.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.9% | 6.9% | 9.4% | 9.7% | 12.6% | 12.3% | 14.3% | 13.7% | 14.5% | 12.3% | 10.8% |
| ROA | 2.2% | 2.2% | 2.5% | 2.2% | 3.1% | 3.3% | 3.9% | 3.7% | 4.3% | 3.9% | 3.5% |
| ROIC | 7.0% | 7.0% | 9.3% | 8.4% | 8.4% | 8.0% | 7.8% | 6.5% | 6.5% | 6.1% | 6.1% |
| ROCE | 7.0% | 7.0% | 8.2% | 9.9% | 9.9% | 9.3% | 9.1% | 7.7% | 7.4% | 6.9% | 7.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.60 | 0.60 | 0.67 | 0.77 | 0.70 | 0.77 | 0.78 | 0.95 | 0.79 | 0.75 | 0.78 |
| Debt / EBITDA | 3.81 | 3.81 | 4.32 | 3.25 | 2.83 | 3.46 | 3.04 | 4.05 | 3.48 | 3.49 | 3.45 |
| Net Debt / Equity | — | 0.54 | -0.07 | 0.68 | 0.62 | 0.72 | 0.67 | 0.83 | 0.66 | 0.59 | 0.63 |
| Net Debt / EBITDA | 3.43 | 3.43 | -0.48 | 2.87 | 2.50 | 3.25 | 2.62 | 3.56 | 2.90 | 2.73 | 2.79 |
| Debt / FCF | — | 7.06 | -0.62 | 4.00 | 4.70 | 3.93 | 2.54 | 4.43 | 4.69 | 3.38 | 5.70 |
| Interest Coverage | 3.97 | 3.97 | 5.92 | 4.99 | 6.17 | 5.31 | 5.43 | 4.48 | 4.46 | 3.90 | 4.04 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.06 | 1.06 | 1.51 | 1.03 | 1.04 | 1.06 | 1.10 | 1.02 | 1.06 | 1.05 | 0.96 |
| Quick Ratio | 1.06 | 1.06 | 1.51 | 1.03 | 1.04 | 1.06 | 1.10 | 1.02 | 1.06 | 1.05 | 0.96 |
| Cash Ratio | 0.04 | 0.04 | 0.51 | 0.03 | 0.03 | 0.02 | 0.07 | 0.07 | 0.08 | 0.14 | 0.12 |
| Asset Turnover | — | 0.20 | 0.18 | 0.20 | 0.22 | 0.25 | 0.31 | 0.36 | 0.42 | 0.48 | 0.49 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.0% | 0.8% | 1.0% | 1.1% | 1.1% | 1.4% | 1.8% | 2.2% | 2.5% | 2.9% |
| Payout Ratio | 44.6% | 44.6% | 35.9% | 48.8% | 38.5% | 43.2% | 42.4% | 48.0% | 47.6% | 58.7% | 68.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 2.2% | 2.3% | 2.0% | 2.8% | 2.6% | 3.4% | 3.7% | 4.6% | 4.0% | 4.5% |
| FCF Yield | 2.7% | 2.6% | 3.8% | 3.7% | 3.0% | 4.5% | 6.9% | 5.4% | 4.7% | 6.3% | 4.4% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.2% | 1.1% |
| Total Shareholder Yield | 1.0% | 1.0% | 0.8% | 1.0% | 1.1% | 1.1% | 1.4% | 1.8% | 2.3% | 2.6% | 4.0% |
| Shares Outstanding | — | $260M | $224M | $219M | $215M | $207M | $195M | $190M | $186M | $182M | $178M |
Acquisition integration and leverage
Based on reported figures, AJG trades at a P/B of 2.52, which appears to command a premium relative to peers like Brown & Brown, suggesting that investors are pricing in the firm's consistent ability to integrate smaller agencies into its decentralized brokerage platform without significant client churn.
The current P/B multiple reflects a market expectation of sustained organic growth and successful margin expansion through the Gallagher Bassett TPA integration. While the P/E of 39.31 appears elevated, it may be distorted by non-cash amortization of intangibles, warranting a focus on the forward P/E of 17.08 as a more representative valuation anchor.
As reported in financial statements, AJG achieved a combined ratio of 74.4% in 2026Q1, indicating strong underwriting profitability that suggests the firm's decentralized branch structure effectively manages operational costs even as it scales its global footprint through high-frequency M&A activity in the current market.
The fluctuation in the loss ratio, which reached 60.9% in 2025Q4, highlights the inherent volatility introduced by the firm's recent pivot into the reinsurance brokerage space. Investors should monitor whether this combined ratio trajectory remains sustainable as the firm integrates larger, more complex treaty reinsurance assets.
According to recent SEC filings, the company maintains a D/E ratio of 0.60, which suggests a healthy capital buffer that supports ongoing M&A activity while providing a stable foundation for long-term operational resilience in the increasingly volatile global insurance and reinsurance markets.
The firm's ability to maintain this leverage profile while aggressively acquiring assets indicates disciplined capital allocation. However, the reliance on intangible assets to drive growth suggests that the true economic leverage may be higher than the reported D/E ratio implies, warranting further investigation into off-balance-sheet earn-out obligations.
Based on reported financial data, the P/E ratio is frequently misapplied to AJG, as it fails to account for the significant non-cash amortization of intangible assets stemming from the firm's aggressive acquisition history, which obscures the underlying operational performance and core cash-generating capacity of the business.
Investors should prioritize P/B and organic revenue growth metrics over P/E to better assess the firm's franchise quality. Relying on P/E may lead to an inaccurate assessment of valuation, as quarterly earnings volatility caused by acquisition-related earn-out adjustments often creates a misleading picture of the firm's true profitability.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AJG stock.
Arthur J. Gallagher & Co.'s current P/E ratio is 44.3x. The historical average is 27.6x. This places it at the 90th percentile of its historical range.
Arthur J. Gallagher & Co.'s current EV/EBITDA is 21.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Arthur J. Gallagher & Co.'s return on equity (ROE) is 6.9%. The historical average is 18.5%.
Based on historical data, Arthur J. Gallagher & Co. is trading at a P/E of 44.3x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arthur J. Gallagher & Co.'s current dividend yield is 1.01% with a payout ratio of 44.6%.
Arthur J. Gallagher & Co. has 54.8% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
Arthur J. Gallagher & Co.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.