Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (22 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $222.05 Implied EV: $69.01B |
What growth rate is the market pricing in at $214?
The market implies +11.8% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +16.3%, reflecting heavy growth investment expected to generate future returns.
Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
"Market is pricing this stock without strong emotion in either direction"
Near fair value with balanced sentiment — no strong signal in either direction
