What Is AJG Fair Value?
Arthur J. Gallagher & Co. (AJG) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Arthur J. Gallagher & Co. (AJG) has a composite fair value estimate of $356.21 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $232.90, suggesting the stock is undervalued by 52.9%.
Data as of October 14, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$356.21
vs. current price of $232.90(+52.9%)
How Is AJG Fair Value Calculated?
Four independent models estimate what AJG is worth. Each uses different inputs and assumptions. The composite blends them by weight.
AJG Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$514.73
+121.0%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$298.22
+28.0%Undervalued
Inputs used
AJG Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$165.15
-29.1%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$232.97
+0.0%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $232.90 is 121.0% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.45B | $2.30B |
| Year 2 | $2.89B | $2.53B |
| Year 3 | $3.40B | $2.79B |
| Year 4 | $4.01B | $3.08B |
| Year 5 | $4.72B | $3.39B |
| Year 6 | $5.56B | $3.74B |
| Year 7 | $6.55B | $4.12B |
| Year 8 | $7.71B | $4.55B |
| Year 9 | $9.09B | $5.01B |
| Year 10 | $10.70B | $5.53B |
| Terminal Value | $253.42B | $130.91B |
What Are AJG's Key Financial Metrics?
Earnings & Growth
Current Price
$232.90
EPS (TTM)
$6.03
Forward P/E
15.7
Profit Margin
10.4%
Cash & Balance Sheet
Free Cash Flow
2.1B
EBITDA
4.3B
Book Value
$92.54
Total Debt
14.1B
What Do Analysts Say About AJG?
Low
$242.00
Average
$283.33
High
$388.00
Upside
+21.7%
AJG Fair Value FAQ
What is the fair value of AJG?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), AJG's estimated fair value is $356.21. The stock is currently trading at $232.90, which makes it undervalued by our analysis.
How is AJG's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is AJG overvalued or undervalued?
Based on our analysis, AJG is undervalued. The current price of $232.90 is 52.9% below our estimated fair value of $356.21.
What do Wall Street analysts say about AJG?
18 analysts cover Arthur J. Gallagher & Co. with a consensus rating of "Buy." The average price target is $283.33, ranging from $242.00 to $388.00. This implies 21.7% upside from the current price.