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)

$193.26

Above fair value
-31.30% vs current price $253.76

Method range

$81.56 $529.28

median $231.58

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$193.26
  • Exit multiple$529.28
  • Analyst target$269.90
  • Graham number$81.56

Stock price

$253.76

FCF / share (TTM)

$3.58

3Y FCF CAGR

-2.5%

Fair value @ hist. growth

$53.94

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 -370.5% 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)7.0%
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%
5.0%12.3%10.8%9.0%6.8%4.0%
6.0%15.8%14.6%13.3%11.7%9.9%
7.0%18.8%17.9%16.8%15.6%14.2%
8.0%21.6%20.7%19.8%18.9%17.8%
9.0%24.1%23.4%22.6%21.8%20.9%
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