Arthur J Gallagher & Co (AJG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Arthur J Gallagher & Co stock (AJG) is currently trading at $213.56. Arthur J Gallagher & Co PE ratio is 37.21. Arthur J Gallagher & Co PS ratio (Price-to-Sales) is 4.22. Analyst consensus price target for AJG is $271.37. WallStSmart rates AJG as Hold.
- AJG PE ratio analysis and historical PE chart
- AJG PS ratio (Price-to-Sales) history and trend
- AJG intrinsic value — DCF, Graham Number, EPV models
- AJG stock price prediction 2025 2026 2027 2028 2029 2030
- AJG fair value vs current price
- AJG insider transactions and insider buying
- Is AJG undervalued or overvalued?
- Arthur J Gallagher & Co financial analysis — revenue, earnings, cash flow
- AJG Piotroski F-Score and Altman Z-Score
- AJG analyst price target and Smart Rating
Arthur J Gallagher & Co
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AJG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Arthur J Gallagher & Co (AJG)
AJG trades 426% above its Graham fair value of $39.03, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Arthur J Gallagher & Co (AJG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, revenue growth. Concerns around return on equity and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Arthur J Gallagher & Co (AJG) Key Strengths (4)
Growing significantly faster than its price suggests
Revenue surging 36.70% year-over-year
93.63% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Arthur J Gallagher & Co (AJG) Areas to Watch (6)
Earnings declining -48.30%, profits shrinking
Low profitability relative to shareholder equity
Thin operating margins with cost pressures present
Premium valuation at 4.2x annual revenue
Fairly priced relative to book value
Decent profitability, keeps $12 per $100 revenue
Supporting Valuation Data
Arthur J Gallagher & Co (AJG) Detailed Analysis Report
Overall Assessment
This company scores 60/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.8/10) while 6 fall into concern territory (avg 3.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Revenue Growth, Institutional Own.. Valuation metrics including PEG Ratio (0.93) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 36.70%.
The Bear Case
The primary concerns are EPS Growth, Return on Equity, Operating Margin. Some valuation metrics including Price/Sales (4.22), Price/Book (2.37) suggest expensive pricing. Growth concerns include EPS Growth at -48.30%, which may limit upside. Profitability pressure is visible in Return on Equity at 6.91%, Operating Margin at 10.40%, Profit Margin at 11.50%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 6.91% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 36.70% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Revenue Growth) and negatives (EPS Growth, Return on Equity). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AJG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AJG's Price-to-Sales ratio of 4.22x trades 136% above its historical average of 1.79x (97th percentile), historically expensive. The current valuation is 7% below its historical high of 4.54x set in Mar 2026, and 335% above its historical low of 0.97x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Arthur J Gallagher & Co (AJG) · FINANCIAL SERVICES › INSURANCE BROKERS
The Big Picture
Arthur J Gallagher & Co is a strong growth company balancing expansion with improving profitability. Revenue reached 13.0B with 37% growth year-over-year. Profit margins of 11.5% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 37% YoY, reaching 13.0B. This pace significantly outperforms most INSURANCE BROKERS peers.
Generating 713M in free cash flow and 753M in operating cash flow. Earnings are translating into actual cash generation.
Earnings fell 48% YoY while revenue grew 37%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Arthur J Gallagher & Co push profit margins above 15% as the business scales?
Growth sustainability: can Arthur J Gallagher & Co maintain 37%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor INSURANCE BROKERS industry trends, competitive moves, and regulatory changes that could impact Arthur J Gallagher & Co.
Bottom Line
Arthur J Gallagher & Co offers an attractive blend of growth (37% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(104 last 3 months)
| Insider | Type | Shares |
|---|---|---|
HOWELL, DOUGLAS K VP & Chief Financial Officer | Buy | +12,892.211 |
Data sourced from SEC Form 4 filings
Last updated: 11:52:46 AM
About Arthur J Gallagher & Co(AJG)
NYSE
FINANCIAL SERVICES
INSURANCE BROKERS
USA
Arthur J. Gallagher & Co. (AJG) is an American global insurance brokerage and risk management services firm headquartered in Rolling Meadows, Illinois.