It's been a great aftermarket session for Arthur J. Gallagher & Co. investors, who saw their shares rise 1.04% to a price of $184.35 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Arthur J. Gallagher & Co. (AJG) is an American global insurance brokerage and risk management services firm headquartered in Rolling Meadows, Illinois. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, Arthur J. Gallagher & Co. has a trailing 12 month P/E ratio of 35.59 and a P/B ratio of 4.717.
Arthur J. Gallagher & Co.'s PEG ratio is 2.09, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.