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Arthur J. Gallagher (BSP:A1JG34) Cyclically Adjusted PS Ratio : 6.10 (As of Jun. 09, 2024)


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What is Arthur J. Gallagher Cyclically Adjusted PS Ratio?

As of today (2024-06-09), Arthur J. Gallagher's current share price is R$617.80. Arthur J. Gallagher's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was R$101.28. Arthur J. Gallagher's Cyclically Adjusted PS Ratio for today is 6.10.

The historical rank and industry rank for Arthur J. Gallagher's Cyclically Adjusted PS Ratio or its related term are showing as below:

BSP:A1JG34' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.71   Med: 2.69   Max: 5.93
Current: 5.75

During the past years, Arthur J. Gallagher's highest Cyclically Adjusted PS Ratio was 5.93. The lowest was 1.71. And the median was 2.69.

BSP:A1JG34's Cyclically Adjusted PS Ratio is ranked worse than
94.35% of 407 companies
in the Insurance industry
Industry Median: 0.97 vs BSP:A1JG34: 5.75

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Arthur J. Gallagher's adjusted revenue per share data for the three months ended in Mar. 2024 was R$36.526. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is R$101.28 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arthur J. Gallagher Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Arthur J. Gallagher's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arthur J. Gallagher Cyclically Adjusted PS Ratio Chart

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 3.83 4.68 4.71 5.26

Arthur J. Gallagher Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.64 5.23 5.34 5.26 5.67

Competitive Comparison of Arthur J. Gallagher's Cyclically Adjusted PS Ratio

For the Insurance Brokers subindustry, Arthur J. Gallagher's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arthur J. Gallagher's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Arthur J. Gallagher's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Arthur J. Gallagher's Cyclically Adjusted PS Ratio falls into.



Arthur J. Gallagher Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Arthur J. Gallagher's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=617.80/101.28
=6.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arthur J. Gallagher's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Arthur J. Gallagher's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=36.526/131.7762*131.7762
=36.526

Current CPI (Mar. 2024) = 131.7762.

Arthur J. Gallagher Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 8.468 100.560 11.097
201409 9.314 100.428 12.221
201412 10.019 99.070 13.327
201503 11.595 99.621 15.338
201506 12.427 100.684 16.265
201509 16.059 100.392 21.079
201512 14.601 99.792 19.281
201603 13.539 100.470 17.758
201606 13.700 101.688 17.754
201609 13.508 101.861 17.475
201612 13.779 101.863 17.825
201703 14.256 102.862 18.263
201706 13.515 103.349 17.232
201709 13.677 104.136 17.307
201712 13.604 104.011 17.236
201803 16.260 105.290 20.350
201806 16.815 106.317 20.842
201809 19.553 106.507 24.192
201812 17.139 105.998 21.307
201903 19.708 107.251 24.215
201906 16.819 108.070 20.509
201909 19.678 108.329 23.937
201912 18.299 108.420 22.241
202003 23.605 108.902 28.563
202006 21.157 108.767 25.633
202009 25.387 109.815 30.464
202012 22.438 109.897 26.905
202103 30.580 111.754 36.059
202106 23.614 114.631 27.146
202109 26.631 115.734 30.322
202112 26.343 117.630 29.511
202203 28.365 121.301 30.815
202206 24.028 125.017 25.327
202209 24.941 125.227 26.245
202212 24.675 125.222 25.967
202303 32.477 127.348 33.606
202306 27.003 128.729 27.642
202309 27.940 129.860 28.352
202312 27.049 129.419 27.542
202403 36.526 131.776 36.526

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Arthur J. Gallagher  (BSP:A1JG34) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Arthur J. Gallagher Cyclically Adjusted PS Ratio Related Terms

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Arthur J. Gallagher (BSP:A1JG34) Business Description

Traded in Other Exchanges
Address
2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050
Arthur J. Gallagher & Co provides insurance brokerage and consulting services to middle-market entities around the world. The majority of the company's revenue comes from its brokerage segment, where it negotiates and places its customers with insurance companies that provide, among other types, property/casualty and health insurance. The company's primary source of revenue in the brokerage segment is commissioning from the insurance companies. The company also generates significant revenue in its corporate segment, which includes clean energy investment and other investment income. The company generates most of its revenue in the United States, with the remaining revenue coming primarily from Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.

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