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)

$182.84

Above fair value
-18.21% vs current price $216.14

Method range

$81.56 $529.74

median $225.61

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$182.84
  • Exit multiple$529.74
  • Analyst target$268.38
  • Graham number$81.56

Stock price

$216.14

FCF / share (TTM)

$3.58

3Y FCF CAGR

-2.5%

Fair value @ hist. growth

$51.39

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

15.5%

per year over your projection horizon

Premium vs DCF

Margin of safety -320.6% vs hist-growth DCF

Historical 3Y CAGR

-2.5%

Your model implies

15.5%

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)7.3%
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%
5.3%11.2%9.8%8.2%6.3%3.9%
6.3%14.5%13.4%12.2%10.8%9.2%
7.3%17.4%16.5%15.5%14.4%13.2%
8.3%20.0%19.2%18.4%17.5%16.5%
9.3%22.4%21.7%21.0%20.3%19.4%
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/EToday45.1
5Y low35.6
Median42.8
5Y high49.8
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

0.55

Vs market benchmark

Frequently asked questions