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:
We started the process of determining a valid price forecast for Arthur J Gallagher & Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Arthur J Gallagher & Co ranked in the 60th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 74.83%. As for the metrics that stood out in our discounted cash flow analysis of Arthur J Gallagher & Co, consider:
The company has produced more trailing twelve month cash flow than 77.53% of its sector Financial Services.
Arthur J Gallagher & Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 24.82% 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 just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FNHC, FHI, CB, GL, and FFG 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.
Insurers are dealing with insured losses arising from the Covid-19 pandemic. Now they have to worry about losses from protests spreading across the U.S. What’s more, hurricane season started yesterday.
Introduction The Dividend Champions list is a monthly compilation of companies which have consistently increased their annual dividend payouts, and the latest edition may be found here. However, since this list is only produced once per month, the data in it can quickly get out of date. Furthermore, close to...