Arthur J. Gallagher & Co vs Marsh

Arthur J. Gallagher & Co (AJG) is overvalued and Marsh (MRSH) is overvalued.

Both trade above our estimate of their intrinsic value. MRSH is the closer of the two: -75%, against -209% for AJG.

Values as of the 22 Sept 2026 close.

Arthur J. Gallagher & Co (AJG)

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

Marsh (MRSH)

Book value at 2.50x, the multiple a 25.7% return on equity justifies, blended with earnings, values the shares at $96.90; the price of $170.01 is 75% above that value.

Leak Score 48/100 on 10 of 12 signals

MetricAJGMRSH
VerdictOvervaluedOvervalued
Price$230.45$170.01
Intrinsic value$74.47$96.90
Margin of safety-209%-75%
Leak Score41/100 (8/12)48/100 (10/12)
Market cap$59.1B$81.1B
Revenue growth, 5 years15.3%9.4%
Operating margin17.1%24.3%
Net margin10.0%14.2%
Return on equity6.7%25.7%
Debt to equity0.591.47
P/E38.1x20.8x
Forward P/E15.4x14.9x
P/B2.5x5.3x
Dividend yield1.2%2.2%

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