Arthur J. Gallagher & Co. (AJG) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Insurance - Brokers
EV/EBITDA
↑
18.42
↓-13% vs avg
5yr avg: 21.18
30Y Low5.7·High22.2
P/FCF
↑
30.83
+5% vs avg
5yr avg: 29.29
30Y Low11.1·High40.4
P/B Ratio
↓
2.39
↓-38% 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 37.2x earnings, 13% below its 5-year average of 42.9x, sitting at the 83rd percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a premium of 174%. On a free-cash-flow basis, the stock trades at 30.8x P/FCF, 5% above 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 | $55.0B | $67.4B | $63.6B | $49.3B | $40.5B | $35.2B | $24.1B | $18.1B | $13.7B | $11.5B | $9.3B |
| Enterprise Value | $67.6B | $80.0B | $62.1B | $56.7B | $46.2B | $41.4B | $28.3B | $22.4B | $16.7B | $14.0B | $11.6B |
| P/E Ratio → | 37.23 | 45.01 | 43.47 | 50.88 | 36.33 | 38.83 | 29.45 | 27.05 | 21.68 | 24.91 | 22.40 |
| P/S Ratio | 3.95 | 4.83 | 5.50 | 4.90 | 4.73 | 4.28 | 3.44 | 2.54 | 1.98 | 1.85 | 1.63 |
| P/B Ratio | 2.39 | 2.89 | 3.15 | 4.56 | 4.40 | 4.11 | 3.87 | 3.47 | 3.00 | 2.77 | 2.54 |
| P/FCF | 30.83 | 37.74 | 26.04 | 26.83 | 33.53 | 22.32 | 14.59 | 18.47 | 21.41 | 15.90 | 22.93 |
| P/OCF | 28.52 | 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 18.4x EBITDA, 13% below its 5-year average of 21.2x. The Financial Services sector median is 11.4x, placing the stock at a 62% 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 | 18.42 | 21.78 | 19.86 | 22.17 | 20.36 | 21.73 | 17.67 | 18.39 | 16.14 | 15.58 | 14.00 |
| EV / EBIT | 26.54 | 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 20.3%. ROE of 6.9% is modest, trailing the sector median of 9.0%. ROIC of 7.0% represents adequate returns on invested capital versus a sector median of 5.5%.
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 (11% below the sector average of 4.3x). 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 1.2% 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 2.7% (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 | 1.2% | 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 | 2.7% | 2.2% | 2.3% | 2.0% | 2.8% | 2.6% | 3.4% | 3.7% | 4.6% | 4.0% | 4.5% |
| FCF Yield | 3.2% | 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 | 1.2% | 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 | $55B | 37.2 | 18.4 | 30.8 | 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 | $68B | 18.7 | 15.7 | 21.2 | 47.7% | 25.3% | 46.3% | 13.5% | 3.1 |
 WTW | $24B | 15.7 | 10.5 | 15.6 | 42.1% | 23.0% | 20.0% | 14.0% | 2.6 |
 BRO | $20B | 18.7 | 13.1 | 14.6 | 87.7% | 28.5% | 11.1% | 8.7% | 3.8 |
 RYAN | $5B | 74.4 | 8.7 | 7.9 | 90.6% | 20.5% | 5.4% | 10.8% | 3.9 |
 EH | $258M | -6.3 | — | — | 61.5% | -76.6% | -26.7% | -25.8% | — |
 ERIE | $10B | 20.8 | 12.4 | 17.9 | 15.8% | 17.7% | 26.2% | 29.5% | — |
 HIG | $35B | 9.6 | 7.7 | 6.1 | 46.1% | 16.8% | 21.7% | 16.3% | 0.8 |
 CNA | $12B | 9.5 | 8.6 | 5.0 | 30.7% | 11.0% | 11.5% | 8.9% | 1.8 |
 ACGL | $32B | 7.8 | 6.6 | 5.3 | 37.2% | 25.0% | 19.5% | 15.4% | 0.5 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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AJG — 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 37.2x. The historical average is 27.6x. This places it at the 83th percentile of its historical range.
What is Arthur J. Gallagher & Co.'s EV/EBITDA?
Arthur J. Gallagher & Co.'s current EV/EBITDA is 18.4x. 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 37.2x. This is at the 83th 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 1.20% 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.