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

Arthur J. Gallagher (FRA:GAH) Cyclically Adjusted PS Ratio : 5.69 (As of Jun. 01, 2024)


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

What is Arthur J. Gallagher Cyclically Adjusted PS Ratio?

As of today (2024-06-01), Arthur J. Gallagher's current share price is €228.70. Arthur J. Gallagher's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €40.20. Arthur J. Gallagher's Cyclically Adjusted PS Ratio for today is 5.69.

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

FRA:GAH' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.71   Med: 2.69   Max: 5.93
Current: 5.74

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.

FRA:GAH's Cyclically Adjusted PS Ratio is ranked worse than
93.92% of 395 companies
in the Insurance industry
Industry Median: 1.01 vs FRA:GAH: 5.74

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 €13.496. 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 €40.20 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
=228.70/40.2
=5.69

* 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)
=13.496/131.7762*131.7762
=13.496

Current CPI (Mar. 2024) = 131.7762.

Arthur J. Gallagher Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 5.575 100.560 7.306
201409 6.183 100.428 8.113
201412 6.151 99.070 8.182
201503 6.821 99.621 9.023
201506 7.117 100.684 9.315
201509 7.332 100.392 9.624
201512 6.908 99.792 9.122
201603 6.575 100.470 8.624
201606 7.123 101.688 9.231
201609 7.399 101.861 9.572
201612 7.789 101.863 10.076
201703 8.524 102.862 10.920
201706 7.300 103.349 9.308
201709 7.327 104.136 9.272
201712 6.977 104.011 8.839
201803 8.043 105.290 10.066
201806 7.634 106.317 9.462
201809 8.157 106.507 10.092
201812 7.759 105.998 9.646
201903 9.083 107.251 11.160
201906 7.721 108.070 9.415
201909 8.675 108.329 10.553
201912 8.025 108.420 9.754
202003 8.744 108.902 10.581
202006 7.242 108.767 8.774
202009 7.983 109.815 9.579
202012 7.170 109.897 8.597
202103 9.117 111.754 10.750
202106 7.795 114.631 8.961
202109 8.576 115.734 9.765
202112 8.245 117.630 9.237
202203 10.351 121.301 11.245
202206 9.006 125.017 9.493
202209 9.608 125.227 10.111
202212 8.881 125.222 9.346
202303 11.647 127.348 12.052
202306 10.270 128.729 10.513
202309 10.602 129.860 10.758
202312 10.124 129.419 10.308
202403 13.496 131.776 13.496

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  (FRA:GAH) 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

Thank you for viewing the detailed overview of Arthur J. Gallagher's Cyclically Adjusted PS 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