Intrinsic value of Arthur J. Gallagher - AJG

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$55.81

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$55.81

 
Intrinsic value

$47.94

 
Up/down potential

-14%

 
Rating

hold

 
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Our model is not good at valuating stocks of financial companies, such as AJG.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AJG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 10.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.76
  3.70
  3.83
  3.95
  4.05
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
Revenue, $m
  5,595
  5,802
  6,024
  6,262
  6,516
  6,786
  7,073
  7,378
  7,701
  8,043
  8,405
  8,787
  9,190
  9,616
  10,065
  10,538
  11,037
  11,562
  12,115
  12,697
  13,310
  13,955
  14,632
  15,345
  16,095
  16,883
  17,711
  18,582
  19,497
  20,459
  21,469
Variable operating expenses, $m
 
  3,757
  3,887
  4,025
  4,173
  4,331
  4,498
  4,676
  4,864
  5,063
  5,274
  5,120
  5,355
  5,603
  5,864
  6,140
  6,431
  6,737
  7,059
  7,398
  7,755
  8,131
  8,526
  8,941
  9,378
  9,837
  10,320
  10,827
  11,360
  11,920
  12,509
Fixed operating expenses, $m
 
  1,565
  1,604
  1,644
  1,686
  1,728
  1,771
  1,815
  1,861
  1,907
  1,955
  2,004
  2,054
  2,105
  2,158
  2,212
  2,267
  2,324
  2,382
  2,441
  2,502
  2,565
  2,629
  2,695
  2,762
  2,831
  2,902
  2,974
  3,049
  3,125
  3,203
Total operating expenses, $m
  5,128
  5,322
  5,491
  5,669
  5,859
  6,059
  6,269
  6,491
  6,725
  6,970
  7,229
  7,124
  7,409
  7,708
  8,022
  8,352
  8,698
  9,061
  9,441
  9,839
  10,257
  10,696
  11,155
  11,636
  12,140
  12,668
  13,222
  13,801
  14,409
  15,045
  15,712
Operating income, $m
  467
  479
  533
  592
  657
  728
  804
  887
  977
  1,073
  1,176
  1,664
  1,782
  1,908
  2,043
  2,187
  2,339
  2,502
  2,675
  2,858
  3,053
  3,259
  3,478
  3,710
  3,955
  4,215
  4,490
  4,781
  5,088
  5,413
  5,757
EBITDA, $m
  818
  969
  1,027
  1,091
  1,160
  1,236
  1,318
  1,407
  1,503
  1,606
  1,716
  1,834
  1,960
  2,095
  2,238
  2,391
  2,554
  2,726
  2,910
  3,105
  3,311
  3,530
  3,762
  4,008
  4,268
  4,543
  4,834
  5,142
  5,467
  5,811
  6,174
Interest expense (income), $m
  113
  99
  111
  123
  137
  151
  166
  182
  200
  218
  237
  258
  279
  302
  326
  351
  378
  406
  436
  467
  500
  535
  571
  609
  650
  692
  736
  783
  832
  884
  938
Earnings before tax, $m
  357
  380
  422
  469
  520
  577
  638
  705
  777
  855
  939
  1,406
  1,503
  1,606
  1,717
  1,835
  1,961
  2,096
  2,239
  2,391
  2,553
  2,725
  2,907
  3,100
  3,306
  3,523
  3,754
  3,998
  4,256
  4,530
  4,819
Tax expense, $m
  -88
  103
  114
  127
  140
  156
  172
  190
  210
  231
  254
  380
  406
  434
  464
  496
  530
  566
  604
  646
  689
  736
  785
  837
  893
  951
  1,013
  1,079
  1,149
  1,223
  1,301
Net income, $m
  414
  278
  308
  342
  380
  421
  466
  515
  567
  624
  685
  1,026
  1,097
  1,173
  1,253
  1,340
  1,432
  1,530
  1,634
  1,745
  1,863
  1,989
  2,122
  2,263
  2,413
  2,572
  2,740
  2,918
  3,107
  3,307
  3,518

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  546
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  11,490
  11,354
  11,789
  12,254
  12,751
  13,280
  13,842
  14,438
  15,070
  15,740
  16,447
  17,195
  17,985
  18,818
  19,697
  20,623
  21,599
  22,627
  23,709
  24,848
  26,047
  27,308
  28,635
  30,030
  31,497
  33,039
  34,660
  36,364
  38,155
  40,036
  42,014
Adjusted assets (=assets-cash), $m
  10,944
  11,354
  11,789
  12,254
  12,751
  13,280
  13,842
  14,438
  15,070
  15,740
  16,447
  17,195
  17,985
  18,818
  19,697
  20,623
  21,599
  22,627
  23,709
  24,848
  26,047
  27,308
  28,635
  30,030
  31,497
  33,039
  34,660
  36,364
  38,155
  40,036
  42,014
Revenue / Adjusted assets
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
Average production assets, $m
  1,663
  1,723
  1,789
  1,860
  1,935
  2,015
  2,101
  2,191
  2,287
  2,389
  2,496
  2,610
  2,729
  2,856
  2,989
  3,130
  3,278
  3,434
  3,598
  3,771
  3,953
  4,144
  4,346
  4,558
  4,780
  5,014
  5,260
  5,519
  5,791
  6,076
  6,376
Working capital, $m
  -196
  -41
  -42
  -44
  -46
  -48
  -50
  -52
  -54
  -56
  -59
  -62
  -64
  -67
  -70
  -74
  -77
  -81
  -85
  -89
  -93
  -98
  -102
  -107
  -113
  -118
  -124
  -130
  -136
  -143
  -150
Total debt, $m
  2,848
  2,574
  2,865
  3,178
  3,511
  3,866
  4,243
  4,643
  5,067
  5,516
  5,991
  6,493
  7,023
  7,582
  8,171
  8,793
  9,448
  10,138
  10,864
  11,628
  12,433
  13,279
  14,169
  15,105
  16,089
  17,124
  18,212
  19,355
  20,557
  21,819
  23,146
Total liabilities, $m
  7,893
  7,619
  7,910
  8,223
  8,556
  8,911
  9,288
  9,688
  10,112
  10,561
  11,036
  11,538
  12,068
  12,627
  13,216
  13,838
  14,493
  15,183
  15,909
  16,673
  17,478
  18,324
  19,214
  20,150
  21,134
  22,169
  23,257
  24,400
  25,602
  26,864
  28,191
Total equity, $m
  3,597
  3,736
  3,879
  4,032
  4,195
  4,369
  4,554
  4,750
  4,958
  5,178
  5,411
  5,657
  5,917
  6,191
  6,480
  6,785
  7,106
  7,444
  7,800
  8,175
  8,569
  8,984
  9,421
  9,880
  10,362
  10,870
  11,403
  11,964
  12,553
  13,172
  13,823
Total liabilities and equity, $m
  11,490
  11,355
  11,789
  12,255
  12,751
  13,280
  13,842
  14,438
  15,070
  15,739
  16,447
  17,195
  17,985
  18,818
  19,696
  20,623
  21,599
  22,627
  23,709
  24,848
  26,047
  27,308
  28,635
  30,030
  31,496
  33,039
  34,660
  36,364
  38,155
  40,036
  42,014
Debt-to-equity ratio
  0.792
  0.690
  0.740
  0.790
  0.840
  0.880
  0.930
  0.980
  1.020
  1.070
  1.110
  1.150
  1.190
  1.220
  1.260
  1.300
  1.330
  1.360
  1.390
  1.420
  1.450
  1.480
  1.500
  1.530
  1.550
  1.580
  1.600
  1.620
  1.640
  1.660
  1.670
Adjusted equity ratio
  0.279
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329
  0.329

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  414
  278
  308
  342
  380
  421
  466
  515
  567
  624
  685
  1,026
  1,097
  1,173
  1,253
  1,340
  1,432
  1,530
  1,634
  1,745
  1,863
  1,989
  2,122
  2,263
  2,413
  2,572
  2,740
  2,918
  3,107
  3,307
  3,518
Depreciation, amort., depletion, $m
  351
  489
  494
  498
  503
  509
  514
  520
  526
  533
  540
  171
  178
  187
  195
  205
  214
  224
  235
  246
  258
  271
  284
  298
  312
  328
  344
  361
  378
  397
  417
Funds from operations, $m
  653
  767
  802
  841
  883
  929
  980
  1,035
  1,094
  1,157
  1,225
  1,197
  1,275
  1,359
  1,449
  1,544
  1,646
  1,754
  1,869
  1,992
  2,122
  2,260
  2,406
  2,561
  2,726
  2,900
  3,084
  3,279
  3,485
  3,704
  3,934
Change in working capital, $m
  31
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -7
  -7
Cash from operations, $m
  622
  733
  804
  842
  885
  931
  982
  1,037
  1,096
  1,159
  1,228
  1,200
  1,278
  1,362
  1,452
  1,548
  1,650
  1,758
  1,873
  1,996
  2,126
  2,264
  2,411
  2,566
  2,731
  2,905
  3,090
  3,285
  3,492
  3,710
  3,942
Maintenance CAPEX, $m
  0
  -109
  -113
  -117
  -122
  -126
  -132
  -137
  -143
  -149
  -156
  -163
  -171
  -178
  -187
  -195
  -205
  -214
  -224
  -235
  -246
  -258
  -271
  -284
  -298
  -312
  -328
  -344
  -361
  -378
  -397
New CAPEX, $m
  -218
  -60
  -66
  -71
  -75
  -80
  -85
  -91
  -96
  -102
  -107
  -113
  -120
  -126
  -133
  -141
  -148
  -156
  -164
  -173
  -182
  -191
  -201
  -212
  -223
  -234
  -246
  -259
  -272
  -286
  -300
Cash from investing activities, $m
  -569
  -169
  -179
  -188
  -197
  -206
  -217
  -228
  -239
  -251
  -263
  -276
  -291
  -304
  -320
  -336
  -353
  -370
  -388
  -408
  -428
  -449
  -472
  -496
  -521
  -546
  -574
  -603
  -633
  -664
  -697
Free cash flow, $m
  53
  564
  625
  655
  688
  725
  765
  809
  857
  908
  964
  923
  988
  1,057
  1,132
  1,212
  1,297
  1,388
  1,485
  1,588
  1,698
  1,815
  1,939
  2,070
  2,210
  2,359
  2,516
  2,683
  2,859
  3,046
  3,244
Issuance/(repayment) of debt, $m
  397
  272
  292
  312
  333
  355
  377
  400
  424
  449
  475
  502
  530
  559
  590
  622
  655
  690
  726
  764
  804
  846
  890
  936
  984
  1,035
  1,088
  1,143
  1,202
  1,263
  1,327
Issuance/(repurchase) of shares, $m
  -55
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  306
  272
  292
  312
  333
  355
  377
  400
  424
  449
  475
  502
  530
  559
  590
  622
  655
  690
  726
  764
  804
  846
  890
  936
  984
  1,035
  1,088
  1,143
  1,202
  1,263
  1,327
Total cash flow (excl. dividends), $m
  337
  835
  917
  967
  1,021
  1,079
  1,142
  1,209
  1,281
  1,357
  1,439
  1,425
  1,518
  1,616
  1,721
  1,833
  1,952
  2,077
  2,211
  2,352
  2,502
  2,661
  2,829
  3,007
  3,195
  3,394
  3,604
  3,826
  4,061
  4,309
  4,571
Retained Cash Flow (-), $m
  41
  -139
  -143
  -153
  -163
  -174
  -185
  -196
  -208
  -220
  -233
  -246
  -260
  -274
  -289
  -305
  -321
  -338
  -356
  -375
  -394
  -415
  -436
  -459
  -483
  -507
  -533
  -561
  -589
  -619
  -651
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  697
  774
  814
  858
  905
  957
  1,013
  1,073
  1,137
  1,206
  1,179
  1,258
  1,342
  1,432
  1,528
  1,631
  1,739
  1,855
  1,977
  2,108
  2,246
  2,392
  2,548
  2,712
  2,886
  3,070
  3,265
  3,472
  3,690
  3,921
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  654
  678
  661
  642
  619
  593
  564
  533
  498
  462
  390
  355
  320
  284
  249
  215
  182
  152
  125
  101
  79
  61
  46
  34
  25
  17
  12
  8
  5
  3
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage and risk management services in the United States and internationally. Its Brokerage segment consists of retail and wholesale insurance brokerage operations. The company’s retail brokerage operations negotiate and place property/casualty, employer-provided health and welfare insurance, and healthcare exchange and retirement solutions primarily for middle-market commercial, industrial, public entity, religious, and not-for-profit entities. This segment’s wholesale brokerage operations assist brokers and agents in the placement of specialized and hard-to-place insurance programs. It also acts as a brokerage wholesaler, and managing general agent or managing general underwriter distributing specialized insurance coverages for insurance carriers; and performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance. The company’s Risk Management segment offers contract claim settlement and administration services for enterprises that choose to self-insure their property/casualty coverages; and for insurance companies that choose to outsource their property/casualty claims departments. This segment also offers integrated disability management programs, as well as information, risk control consulting, and appraisal services. The company offers its services through a network of insurance brokers and consultants to various commercial, industrial, institutional, and governmental organizations. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Itasca, Illinois.

FINANCIAL RATIOS  of  Arthur J. Gallagher (AJG)

Valuation Ratios
P/E Ratio 24
Price to Sales 1.8
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 16
Price to Free Cash Flow 24.6
Growth Rates
Sales Growth Rate 3.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 120.2%
Cap. Spend. - 3 Yr. Gr. Rate 18.3%
Financial Strength
Quick Ratio 1
Current Ratio 0.3
LT Debt to Equity 59.6%
Total Debt to Equity 79.2%
Interest Coverage 4
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 4.8%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 6.4%
Return On Equity 11.4%
Return On Equity - 3 Yr. Avg. 11.1%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 29.4%
Gross Margin - 3 Yr. Avg. 29.9%
EBITDA Margin 14.7%
EBITDA Margin - 3 Yr. Avg. 13.8%
Operating Margin 8.3%
Oper. Margin - 3 Yr. Avg. 7.8%
Pre-Tax Margin 6.4%
Pre-Tax Margin - 3 Yr. Avg. 5.9%
Net Profit Margin 7.4%
Net Profit Margin - 3 Yr. Avg. 6.9%
Effective Tax Rate -24.6%
Eff/ Tax Rate - 3 Yr. Avg. -23.5%
Payout Ratio 65.7%

AJG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AJG stock intrinsic value calculation we used $5595 million for the last fiscal year's total revenue generated by Arthur J. Gallagher. The default revenue input number comes from 2016 income statement of Arthur J. Gallagher. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AJG stock valuation model: a) initial revenue growth rate of 3.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.5%, whose default value for AJG is calculated based on our internal credit rating of Arthur J. Gallagher, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Arthur J. Gallagher.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AJG stock the variable cost ratio is equal to 65%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1527 million in the base year in the intrinsic value calculation for AJG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.3% for Arthur J. Gallagher.

Corporate tax rate of 27% is the nominal tax rate for Arthur J. Gallagher. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AJG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AJG are equal to 29.7%.

Life of production assets of 15.3 years is the average useful life of capital assets used in Arthur J. Gallagher operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AJG is equal to -0.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3597 million for Arthur J. Gallagher - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 178.811 million for Arthur J. Gallagher is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Arthur J. Gallagher at the current share price and the inputted number of shares is $10.0 billion.


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COMPANY NEWS

▶ Arthur J. Gallagher beats Street 1Q forecasts   [Apr-27-17 04:44PM  Associated Press]
▶ Arthur J. Gallagher & Co. Acquires Kelly Financial, Inc.   [Feb-21-17 02:00PM  PR Newswire]
▶ [$$] For Many Firms, Trump Dominates Earnings Calls   [Feb-03-17 01:32AM  at The Wall Street Journal]
▶ [$$] For Many Firms, Trump Dominates Earnings Calls   [06:20AM  at The Wall Street Journal]
▶ Arthur J. Gallagher & Co. Acquires Hill, Chesson & Woody   [Jan-13-17 03:53PM  PR Newswire]
▶ Should You Avoid Arthur J Gallagher & Co (AJG)?   [Dec-09-16 05:49AM  at Insider Monkey]
▶ Arthur J. Gallagher & Co. Acquires Regency Group   [Nov-08-16 11:58AM  PR Newswire]
Stock chart of AJG Financial statements of AJG
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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