Arthur J. Gallagher & Co (AJG) is overvalued and Brown & Brown Inc (BRO) is overvalued.
Both trade above our estimate of their intrinsic value. BRO is the closer of the two: -36%, against -209% for AJG.
Values as of the 22 Sept 2026 close.
Book value at 0.70x, the multiple a 6.7% return on equity justifies, blended with earnings, values the shares at $74.47; the price of $230.45 is 209% above that value.
Leak Score 41/100 on 8 of 12 signals
Book value at 1.25x, the multiple a 9.8% return on equity justifies, blended with earnings, values the shares at $45.92; the price of $62.44 is 36% above that value.
Leak Score 40/100 on 9 of 12 signals
| Metric | AJG | BRO |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $230.45 | $62.44 |
| Intrinsic value | $74.47 | $45.92 |
| Margin of safety | -209% | -36% |
| Leak Score | 41/100 (8/12) | 40/100 (9/12) |
| Market cap | $59.1B | $20.9B |
| Revenue growth, 5 years | 15.3% | 17.7% |
| Operating margin | 17.1% | 29.5% |
| Net margin | 10.0% | 17.5% |
| Return on equity | 6.7% | 9.8% |
| Debt to equity | 0.59 | 0.64 |
| P/E | 38.1x | 19.7x |
| Forward P/E | 15.4x | 12.9x |
| P/B | 2.5x | 1.6x |
| Dividend yield | 1.2% | 1.1% |