Ticker League

Fair Value for Arthur J. Gallagher & (AJG)

See growth priced into Arthur J. Gallagher & (AJG): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what AJG is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$185.50

Above fair value
-30.73% vs current price $242.50

Method range

$81.56 $528.14

median $232.20

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$185.50
  • Exit multiple$528.14
  • Analyst target$278.90
  • Graham number$81.56

Stock price

$242.50

FCF / share (TTM)

$3.58

3Y FCF CAGR

-2.5%

Fair value @ hist. growth

$52.04

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

16.8%

per year over your projection horizon

Premium vs DCF

Margin of safety -366.0% vs hist-growth DCF

Historical 3Y CAGR

-2.5%

Your model implies

16.8%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)7.2%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)-3%
3Y CAGR -3%

Undiscounted FCF per share over 10 years at -3% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
5.2%12.4%11.0%9.3%7.3%4.8%
6.2%15.8%14.7%13.4%11.9%10.2%
7.2%18.7%17.8%16.8%15.6%14.4%
8.2%21.4%20.6%19.8%18.8%17.8%
9.2%23.9%23.2%22.4%21.6%20.8%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday44.4
5Y low35.6
Median42.8
5Y high49.9
P/SToday4.8
5Y low4.2
Median4.8
5Y high5.4
EV/EBITDAToday21.8
5Y low19.7
Median21.8
5Y high25.6

PEG

0.04

Low vs growth

Net debt

$12.6B

Total debt − cash

Beta

0.51

Vs market benchmark

Frequently asked questions