P/E Ratio
Higher than 86% of Financial Services sector peers
Updated 1828h ago
Sector Performance
86th percentileAJG
34.1x
Sector Median
13.7x
Sector Avg
19.2x
Deep Analysis
The P/E ratio of 34.1x means that investors are currently paying $34.10 for every $1 of Arthur J.
Gallagher’s earnings over the past year, making the stock appear expensive relative to its earnings power. This ratio is more than double the sector median of 14.2x, placing the company in the 81st percentile among its financial services peers — indicating it is priced higher than 8 out of 10 comparable firms. No trend data is available: the year-over-year change and quarter-over-quarter change are both reported as N/A, and the metric has not shown a directional movement over the last eight quarters. Because the P/E is extremely elevated but has no observable trend, the high valuation alone signals a risk of overpaying for current earnings, with no recent momentum to confirm or ease that concern. This elevated P/E contradicts a NEUTRAL stance by suggesting the stock may be overvalued relative to its sector, yet the absence of trend data tempers the signal and aligns with the balanced NEUTRAL verdict.
Frequently Asked Questions
What does the P/E Ratio tell investors about AJG?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does AJG's P/E Ratio compare to its sector?
AJG's P/E Ratio of 34.1x compares to a Financial Services sector median of 13.7x, placing it in the 86th percentile.
Who are AJG's closest peers by P/E Ratio?
The closest Financial Services peers by P/E Ratio include: RJF (13.7x), AIG (13.7x), PFG (13.2x), AFL (12.9x), BRK-B (14.5x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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34.1x
Sector Median
13.7x
Sector Avg
19.2x
How AJG's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.