Arthur J Gallagher provides insurance brokerage and risk management services in the United States and internationally. It operates through three segments: Brokerage, Risk Management, and Corporate. The company was founded in 1927 and is based in Itasca, Illinois.
AJG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AJG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Arthur J Gallagher & Co ranked in the 68th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 217.5%. In terms of the factors that were most noteworthy in this DCF analysis for AJG, they are:
The compound growth rate in the free cash flow of Arthur J Gallagher & Co over the past 5.76 years is 0.37%; that's higher than 84.23% of free cash flow generating stocks in the Financial Services sector.
Arthur J Gallagher & Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 22.21% of tickers in our DCF set.
Arthur J Gallagher & Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CRD.A, WRLD, EV, SLRC, and ADS can be thought of as valuation peers to AJG, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Arthur J. Gallagher ([[AJG]] -0.7%) (NYSE: AJG) announces acquisition of Charles W. Merriam & Son, dba The Merriam Agency."The Merriam Agency has been serving the nonprofit community for 125 years! Their deep expertise and long-standing relationships in that market will complement and expand Gallagher's existing strengths," said J. Patrick Gallagher, Jr., Chairman,...
ROLLING MEADOWS, Ill., Sept. 21, 2020 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced the acquisition of Charles W. Merriam & Son, Inc., dba The Merriam Agency. Terms of the transaction were not disclosed. Founded in 1895, The Merriam Agency is a full-service…
ROLLING MEADOWS, Ill., Sept. 18, 2020 /PRNewswire/ --Arthur J. Gallagher & Co. today announced the acquisition of Kingman, Arizona-based Erin P. Collins & Associates, Inc. (ECA). Terms of the transaction were not disclosed. Incorporated in 1994, ECA is an employee benefits and workplace…