Arthur J. Gallagher & Co. (AJG) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Insurance - Brokers
EV/EBITDA
↑
17.22
↓-19% vs avg
5yr avg: 21.18
30Y Low5.7·High22.2
P/FCF
↑
28.36
-3% vs avg
5yr avg: 29.29
30Y Low11.1·High40.4
P/B Ratio
↓
2.20
↓-43% vs avg
5yr avg: 3.82
30Y Low1.9·High9.0
ROE
↓
6.9%
↑-32% vs avg
5yr avg: 10.2%
30Y Low4%·High39%
Debt/EBITDA
↑
3.81
+8% vs avg
5yr avg: 3.54
30Y Low0.2·High4.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AJG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Arthur J. Gallagher & Co. trades at 34.2x earnings, 20% below its 5-year average of 42.9x, sitting at the 80th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 156%. On a free-cash-flow basis, the stock trades at 28.4x P/FCF, roughly in line with the 5-year average of 29.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $50.6B | $67.4B | $63.6B | $49.3B | $40.5B | $35.2B | $24.1B | $18.1B | $13.7B | $11.5B | $9.3B |
| Enterprise Value | $63.2B | $80.0B | $62.1B | $56.7B | $46.2B | $41.4B | $28.3B | $22.4B | $16.7B | $14.0B | $11.6B |
| P/E Ratio → | 34.25 | 45.01 | 43.47 | 50.88 | 36.33 | 38.83 | 29.45 | 27.05 | 21.68 | 24.91 | 22.40 |
| P/S Ratio | 3.63 | 4.83 | 5.50 | 4.90 | 4.73 | 4.28 | 3.44 | 2.54 | 1.98 | 1.85 | 1.63 |
| P/B Ratio | 2.20 | 2.89 | 3.15 | 4.56 | 4.40 | 4.11 | 3.87 | 3.47 | 3.00 | 2.77 | 2.54 |
| P/FCF | 28.36 | 37.74 | 26.04 | 26.83 | 33.53 | 22.32 | 14.59 | 18.47 | 21.41 | 15.90 | 22.93 |
| P/OCF | 26.23 | 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
AJG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Arthur J. Gallagher & Co.'s enterprise value stands at 17.2x EBITDA, 19% below its 5-year average of 21.2x. The Financial Services sector median is 11.4x, placing the stock at a 51% premium on an enterprise-value basis.
| 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 | 17.22 | 21.78 | 19.86 | 22.17 | 20.36 | 21.73 | 17.67 | 18.39 | 16.14 | 15.58 | 14.00 |
| EV / EBIT | 24.81 | 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 |
AJG Profitability
Margins and return-on-capital ratios measuring operating efficiency
Arthur J. Gallagher & Co. earns an operating margin of 18.3%, below the Financial Services sector average of 21.2%. ROE of 6.9% is modest, trailing the sector median of 9.4%. ROIC of 7.0% represents adequate returns on invested capital versus a sector median of 5.7%.
Margins
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% |
Return on Capital
| 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% |
AJG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Arthur J. Gallagher & Co. carries a Debt/EBITDA ratio of 3.8x, which is moderately leveraged (8% below the sector average of 4.1x). Net debt stands at $12.6B ($14.0B total debt minus $1.4B cash). Interest coverage of 4.0x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
AJG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.06x means Arthur J. Gallagher & Co. can comfortably meet its short-term obligations, though there is limited excess liquidity.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
AJG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Arthur J. Gallagher & Co. returns 1.3% to shareholders annually primarily through dividends. A payout ratio of 44.6% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 2.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 1.3% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 2.2% | 2.3% | 2.0% | 2.8% | 2.6% | 3.4% | 3.7% | 4.6% | 4.0% | 4.5% |
| FCF Yield | 3.5% | 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 | 1.3% | 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 |
Peer Comparison
Compare AJG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AJGYou | $51B | 34.2 | 17.2 | 28.4 | 54.8% | 18.3% | 6.9% | 7.0% | 3.8 |
 MMC | $85B | 21.3 | 16.0 | 21.4 | 42.8% | 23.8% | 31.3% | 15.2% | 3.3 |
 AON | $66B | 18.1 | 15.3 | 20.5 | 47.7% | 25.3% | 46.3% | 13.5% | 3.1 |
 WTW | $24B | 15.5 | 10.4 | 15.4 | 42.1% | 23.0% | 20.0% | 14.0% | 2.6 |
 BRO | $19B | 17.9 | 12.7 | 13.9 | 87.7% | 28.5% | 11.1% | 8.7% | 3.8 |
 RYAN | $4B | 62.5 | 7.9 | 6.6 | 90.6% | 20.5% | 5.4% | 10.8% | 3.9 |
 EH | $410M | -10.5 | — | 23.5 | 59.2% | -62.2% | -39.8% | -59.3% | — |
 ERIE | $10B | 20.1 | 12.0 | 17.3 | 15.8% | 17.7% | 26.2% | 29.5% | — |
 HIG | $37B | 10.0 | 7.9 | 6.4 | 46.1% | 16.8% | 21.7% | 16.3% | 0.8 |
 CNA | $12B | 9.3 | 8.5 | 4.9 | 30.7% | 11.0% | 11.5% | 8.9% | 1.8 |
 ACGL | $34B | 8.1 | 6.9 | 5.5 | 37.2% | 25.0% | 19.5% | 15.4% | 0.5 |
| Financial Services Median | — | 13.4 | 11.4 | 10.6 | 63.4% | 21.2% | 9.4% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full AJG Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
See AJG's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs AJG Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare AJG vs MMC
Side-by-side business, growth, and profitability comparison vs Marsh & McLennan Companies, Inc..
Start ComparisonAJG — Frequently Asked Questions
Quick answers to the most common questions about buying AJG stock.
What is Arthur J. Gallagher & Co.'s P/E ratio?
Arthur J. Gallagher & Co.'s current P/E ratio is 34.2x. The historical average is 27.6x. This places it at the 80th percentile of its historical range.
What is Arthur J. Gallagher & Co.'s EV/EBITDA?
Arthur J. Gallagher & Co.'s current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
What is Arthur J. Gallagher & Co.'s ROE?
Arthur J. Gallagher & Co.'s return on equity (ROE) is 6.9%. The historical average is 18.5%.
Is AJG stock overvalued?
Based on historical data, Arthur J. Gallagher & Co. is trading at a P/E of 34.2x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Arthur J. Gallagher & Co.'s dividend yield?
Arthur J. Gallagher & Co.'s current dividend yield is 1.30% with a payout ratio of 44.6%.
What are Arthur J. Gallagher & Co.'s profit margins?
Arthur J. Gallagher & Co. has 54.8% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Arthur J. Gallagher & Co. have?
Arthur J. Gallagher & Co.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.