GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Arthur J. Gallagher & Co (FRA:GAH) » Definitions » Cyclically Adjusted PB Ratio

Arthur J. Gallagher (FRA:GAH) Cyclically Adjusted PB Ratio : 7.25 (As of Jun. 07, 2024)


View and export this data going back to 2010. Start your Free Trial

What is Arthur J. Gallagher Cyclically Adjusted PB Ratio?

As of today (2024-06-07), Arthur J. Gallagher's current share price is €231.40. Arthur J. Gallagher's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was €31.93. Arthur J. Gallagher's Cyclically Adjusted PB Ratio for today is 7.25.

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

FRA:GAH' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.01   Med: 4.55   Max: 7.65
Current: 7.22

During the past years, Arthur J. Gallagher's highest Cyclically Adjusted PB Ratio was 7.65. The lowest was 3.01. And the median was 4.55.

FRA:GAH's Cyclically Adjusted PB Ratio is ranked worse than
95.2% of 417 companies
in the Insurance industry
Industry Median: 1.18 vs FRA:GAH: 7.22

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Arthur J. Gallagher's adjusted book value per share data for the three months ended in Mar. 2024 was €47.579. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €31.93 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arthur J. Gallagher Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Arthur J. Gallagher's Cyclically Adjusted PB 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 PB Ratio Chart

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.96 5.82 6.67 6.35 6.68

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 PB 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 6.18 6.85 6.90 6.68 7.13

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

For the Insurance Brokers subindustry, Arthur J. Gallagher's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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 PB Ratio Distribution in the Insurance Industry

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

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



Arthur J. Gallagher Cyclically Adjusted PB Ratio Calculation

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

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

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=231.40/31.93
=7.25

* 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 Book per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=47.579/131.7762*131.7762
=47.579

Current CPI (Mar. 2024) = 131.7762.

Arthur J. Gallagher Quarterly Data

Book Value per Share CPI Adj_Book
201406 15.043 100.560 19.713
201409 15.657 100.428 20.544
201412 15.912 99.070 21.165
201503 17.438 99.621 23.067
201506 18.573 100.684 24.309
201509 18.418 100.392 24.176
201512 18.880 99.792 24.931
201603 18.236 100.470 23.918
201606 18.098 101.688 23.453
201609 18.459 101.861 23.880
201612 19.123 101.863 24.739
201703 19.076 102.862 24.438
201706 18.993 103.349 24.217
201709 19.073 104.136 24.136
201712 19.774 104.011 25.053
201803 20.106 105.290 25.164
201806 20.830 106.317 25.818
201809 21.207 106.507 26.239
201812 21.492 105.998 26.719
201903 23.315 107.251 28.647
201906 23.208 108.070 28.299
201909 23.577 108.329 28.680
201912 24.667 108.420 29.981
202003 24.004 108.902 29.046
202006 25.455 108.767 30.840
202009 25.479 109.815 30.574
202012 26.252 109.897 31.479
202103 28.864 111.754 34.035
202106 33.371 114.631 38.362
202109 34.529 115.734 39.315
202112 36.115 117.630 40.458
202203 38.856 121.301 42.211
202206 39.618 125.017 41.760
202209 41.072 125.227 43.220
202212 40.734 125.222 42.866
202303 42.800 127.348 44.288
202306 44.524 128.729 45.578
202309 45.409 129.860 46.079
202312 45.597 129.419 46.427
202403 47.579 131.776 47.579

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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  (FRA:GAH) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Arthur J. Gallagher Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Arthur J. Gallagher's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Arthur J. Gallagher (FRA:GAH) 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.

Arthur J. Gallagher (FRA:GAH) Headlines

No Headlines