Arthur J. Gallagher & Co. (AJG)
Forward P/E is 18.68x against a peer median of 15.77x, a ratio of 1.18x — just above the 0.90–1.15 fairly priced band — with trailing P/E 43.39x and PEG 1.24. Latest-quarter revenue grew 24.3% year over year (PRIMARY, EDGAR), far above the cluster median, and the PEG is at or below 1.5, so the growth exception applies and the label is FAIRLY PRICED. Delivered demand check: the Insurance brokers group's median growth was 7.8% year over year — demand rising, and Gallagher grew more than three times as fast as that median.
What would change this label: Move to UNDERVALUED if the forward P/E compresses to about 14.19x or below (0.90x the peer median) while revenue growth holds above the 7.8% cluster median. Move to OVERVALUED if revenue growth falls back to 7.8% or below year over year while the forward P/E stays above about 18.14x (1.15x the peer median), or if the PEG rises above about 1.5 without a matching rise in growth.
Gallagher, an insurance broker, trades at about 19 times next year's expected earnings, a little more than similar brokers at about 16 times. Its sales, though, grew 24.3%, far faster than its peers. Paying a small premium for much faster growth looks fair.
Both lines start at 100 on 2020-09-01. Over the full window Arthur J. Gallagher & Co. returned +145.07% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Arthur J. Gallagher & Co.: -45.0% (2025-06-02 to 2026-05-13). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 18.68x against a peer median of 15.77x, a ratio of 1.18x — just above the 0.90–1.15 fairly priced band — with trailing P/E 43.39x and PEG 1.24. Latest-quarter revenue grew 24.3% year over year (PRIMARY, EDGAR), far above the cluster median, and the PEG is at or below 1.5, so the growth exception applies and the label is FAIRLY PRICED. Delivered demand check: the Insurance brokers group's median growth was 7.8% year over year — demand rising, and Gallagher grew more than three times as fast as that median. The company’s forward P/E is 18.7× against a peer median of 15.8×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Insurance brokers group's median latest-quarter revenue growth was 7.8% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +24.3% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Arthur J. Gallagher & Co. (AJG) | $261.48 | 18.7× | 43.4× |
| AON | $313.48 | 16.2× | 17.1× |
| MRSH | $191.09 | 17.0× | 22.9× |
| WTW | $320.97 | 15.3× | 19.7× |
| BRO | $66.61 | 14.2× | 21.0× |
| ERIE | $246.23 | — | 22.3× |
| Peer median | 15.8× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.
Free cash flow by quarter is not shown for Arthur J. Gallagher & Co.. Its SEC cash-flow facts do not separately tag spending on plant and equipment (normal for a bank), so a quarterly free-cash-flow figure cannot be built without estimating — and this programme does not estimate.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jun 2026 2026-06-30 | $4.0B | — | $324M | 1.25 | — |
| Q/E Mar 2026 2026-03-31 | $4.8B | — | $822M | 3.16 | — |
| Q/E Dec 2025 2025-12-31 | $3.6B | — | $151M | — | — |
| Q/E Sep 2025 2025-09-30 | $3.4B | — | $273M | 1.04 | — |
| Q/E Jun 2025 2025-06-30 | $3.2B | — | $366M | 1.40 | — |
| Q/E Mar 2025 2025-03-31 | $3.7B | — | $704M | 2.72 | — |
| Q/E Dec 2024 2024-12-31 | $2.7B | — | $258M | — | — |
| Q/E Sep 2024 2024-09-30 | $2.8B | — | $313M | 1.39 | — |
| Q/E Jun 2024 2024-06-30 | $2.8B | — | $283M | 1.27 | — |
| Q/E Mar 2024 2024-03-31 | $3.3B | — | $608M | 2.74 | — |
| Q/E Dec 2023 2023-12-31 | $2.4B | — | $-32M | — | — |
| Q/E Sep 2023 2023-09-30 | $2.5B | — | $281M | 1.28 | — |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | Arthur J. Gallagher & Co. |
| Chief executive | J. Patrick Gallagher, Jr. (source: https://en.wikipedia.org/wiki/Arthur_J._Gallagher_&_Co.) |
| Sector | Financials — Insurance Brokers — brokers insurance and provides risk management and employee benefits services |
| Share price (Oct 28, 2026) | $261.48 |
| Market value (market cap) | $66.4B — share price times shares outstanding of 256,300,000 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $15.8B |
| Net income, last twelve months | $1.6B |
| Free cash flow, last twelve months | — |
| Latest reported quarter | Q/E Jun 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +145.07% vs +118.28% |
| Worst peak-to-trough fall | -45.0% (2025-06-02 to 2026-05-13) |
What we could not verify
- Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Free cash flow is absent for one or more quarters: either the filer does not separately tag PP&E purchases in its EDGAR cash-flow facts (common for banks), or — for a successor registrant's newest quarter — the cash-flow lines are year-to-date without the prior-quarter rung needed to difference them. Affected quarters are null in the data, never estimated.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000354190.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000354190.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/AJG/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.