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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Arthur J Gallagher & Co. To summarize, we found that Arthur J Gallagher & Co ranked in the 64th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 119% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Arthur J Gallagher & Co, consider:
The compound growth rate in the free cash flow of Arthur J Gallagher & Co over the past 5.47 years is 0.31%; that's higher than 81.29% 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 only 21.87% 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
MVC, GL, CBOE, TW, 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.
Insurance broker Arthur J. Gallagher & Co. and its claims unit, Gallagher Bassett, has reported a ransomware incident that happened on Saturday, Sept. 26 limited some of its internal systems. In a filing with the Securities and Exchange Commission (SEC), …
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…
Arthur J. Gallagher ([[AJG]] +1.1%) acquired West Monroe, La.-based The Kirksey Agency, servicing Louisiana, Arkansas and Mississippi with its flagship product, crop insurance. In recent years, the agency has expanded its offerings to provide a full range of commercial and personal products and services to clients across the South Central U.S.Financial terms of the transaction were not...