Financials · Insurance Brokers · US stock · price as of 22 Oct 2026
Key indicators
Price
$270.98
52-week range
$190.75 – $284.33
Market cap
$69.6B
P/E (trailing)
44.3×
EV / EBITDA
20.6×
Free-cash-flow yield
3.5%
Dividend yield
1.0%
Revenue (last 12 months)
$15.8B
Revenue growth (3y a year)
17.7%
Operating margin
16.7%
Return on invested capital
5.8%
Net debt / EBITDA
3.0×
Fair value
Fair value (average of valid models)$308.83 middle half of models $260 – $389
Versus priceFair+14% to fair value
P/E multiple
$269.41
P/B multiple
$338.40
P/S multiple
$268.71
EV/EBITDA multiple
$264.27
EV/EBIT multiple
$249.31
EV/revenue multiple
$266.95
10-year DCF, EBITDA exit
$443.59
5-year DCF, EBITDA exit
$404.68
10-year DCF, revenue exit
$442.74
5-year DCF, revenue exit
$402.90
10-year DCF, growth exit
$259.04
5-year DCF, growth exit
$206.17
Dividend discount, multi-stage
$347.01
Earnings power value
$160.48
Model uncertainty
High
X-Ray Score
46/ 100 · Medium confidence · ahead of 32% of sector peers
Valuation46
Growth69
Profitability39
Financial health23
Dividends59
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Arthur J. Gallagher is an insurance broker and risk management firm based in Illinois. Its brokerage arm places property, casualty, employee benefits and reinsurance cover for businesses, public bodies, non-profits and individuals with insurance carriers, and its risk management arm provides claims handling and related consulting. Clients are organisations of many sizes across numerous countries.
The firm earns commissions from insurance carriers and fees from clients, along with some investment income. Revenue is $15.8 billion over the last twelve months, growing at 17.7% a year across three years. The operating margin is 16.7%, and the business earns a profit of 6% on the capital invested in it. It carries net debt of 3.0 times EBITDA, and the dividend yield is 1.0%.
StocksXray gives Arthur J. Gallagher & Co. an X-Ray Score of 46 out of 100 (medium confidence), ahead of 32% of the S&P 500 stocks in its sector. Its strongest lens is growth (69) and its weakest is financial health (23).
Our fair value (the average of the valid models) is $308.83 (range $260.35 to $388.93). At $270.98 the stock trades 12% below that value, so the label is "Fair" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Arthur J. Gallagher & Co. (AJG)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$161.59
$181.68
$218.95
$278.82
$256.43
$270.98
Market cap
$32.8B
$38.2B
$47.1B
$61.5B
$65.7B
$69.6B
P/E
37.0×
35.0×
49.5×
42.9×
44.7×
44.3×
EV / revenue
4.7×
5.1×
5.3×
5.1×
5.5×
5.2×
EV / EBITDA
21.8×
19.9×
24.7×
19.2×
21.2×
20.6×
Price / free cash flow
23.5×
27.5×
23.2×
23.8×
34.0×
28.4×
Free-cash-flow yield
4.3%
3.6%
4.3%
4.2%
2.9%
3.5%
Price / book
3.8×
4.2×
4.4×
3.1×
2.8×
2.9×
Dividend yield
1.19%
1.12%
1.00%
0.86%
1.01%
1.01%
Fundamentals checklist ● 3 Good · ● 2 Average · ● 8 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−1.1%Average
Risk models
Altman Z score1.1×Bad
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)3.4%Bad
Revenue growth (3y)17.7%Good
Growth consistency100%Good
Balance sheet
Current ratio1.1×Average
Net debt / EBITDA3.0×Bad
Interest cover4.1×Bad
Valuation
Fair value vs price1.1×Good
EBIT / EV yield3.2%Bad
Profitability
Return on invested capital5.8%Bad
Operating margin16.7%Bad
Red flags
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
XStocksXray
Arthur J. Gallagher & Co. (AJG)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
8,209
8,551
10,072
11,555
13,942
15,755
Gross profit
7,036
8,528
–
–
–
–
Operating income
1,201
1,584
1,482
2,256
2,510
2,632
Net income
907
1,114
970
1,463
1,494
1,570
Diluted EPS ($)
4.37
5.19
4.42
6.50
5.74
6.12
Free cash flow
1,392
1,390
2,032
2,583
1,930
2,449
Gross margin
85.7%
99.7%
–
–
–
–
Operating margin
14.6%
18.5%
14.7%
19.5%
18.0%
16.7%
Net margin
11.0%
13.0%
9.6%
12.7%
10.7%
10.0%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
33,236
38,358
51,616
64,255
70,665
81,808
Cash
403
738
971
14,987
1,396
1,386
Total debt
6,055
5,873
7,676
12,932
12,744
13,475
Equity
8,508
9,144
10,775
20,154
23,321
23,717
Dividend per share ($)
1.92
2.04
2.20
2.40
2.60
2.70
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
