BRO Relative Valuation
BRO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BRO is overvalued; if below, it's undervalued.
Historical Valuation
Brown & Brown Inc (BRO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.53 is considered Undervalued compared with the five-year average of 24.80. The fair price of Brown & Brown Inc (BRO) is between 122.30 to 143.68 according to relative valuation methord. Compared to the current price of 79.61 USD , Brown & Brown Inc is Undervalued By 34.91%.
Relative Value
Fair Zone
122.30-143.68
Current Price：79.61
34.91%
Undervalued
17.53
PE
1Y
3Y
5Y
Trailing
Forward
13.54
EV/EBITDA
Brown & Brown Inc. (BRO) has a current EV/EBITDA of 13.54. The 5-year average EV/EBITDA is 16.45. The thresholds are as follows: Strongly Undervalued below 12.30, Undervalued between 12.30 and 14.37, Fairly Valued between 18.52 and 14.37, Overvalued between 18.52 and 20.60, and Strongly Overvalued above 20.60. The current Forward EV/EBITDA of 13.54 falls within the Undervalued range.
16.46
EV/EBIT
Brown & Brown Inc. (BRO) has a current EV/EBIT of 16.46. The 5-year average EV/EBIT is 19.21. The thresholds are as follows: Strongly Undervalued below 14.69, Undervalued between 14.69 and 16.95, Fairly Valued between 21.48 and 16.95, Overvalued between 21.48 and 23.74, and Strongly Overvalued above 23.74. The current Forward EV/EBIT of 16.46 falls within the Undervalued range.
3.80
PS
Brown & Brown Inc. (BRO) has a current PS of 3.80. The 5-year average PS is 4.96. The thresholds are as follows: Strongly Undervalued below 3.48, Undervalued between 3.48 and 4.22, Fairly Valued between 5.70 and 4.22, Overvalued between 5.70 and 6.44, and Strongly Overvalued above 6.44. The current Forward PS of 3.80 falls within the Undervalued range.
0.00
P/OCF
Brown & Brown Inc. (BRO) has a current P/OCF of 0.00. The 5-year average P/OCF is 13.30. The thresholds are as follows: Strongly Undervalued below -8.60, Undervalued between -8.60 and 2.35, Fairly Valued between 24.25 and 2.35, Overvalued between 24.25 and 35.20, and Strongly Overvalued above 35.20. The current Forward P/OCF of 0.00 falls within the Undervalued range.
17.93
P/FCF
Brown & Brown Inc. (BRO) has a current P/FCF of 17.93. The 5-year average P/FCF is 21.05. The thresholds are as follows: Strongly Undervalued below 13.29, Undervalued between 13.29 and 17.17, Fairly Valued between 24.93 and 17.17, Overvalued between 24.93 and 28.81, and Strongly Overvalued above 28.81. The current Forward P/FCF of 17.93 falls within the Historic Trend Line -Fairly Valued range.
Brown & Brown Inc (BRO) has a current Price-to-Book (P/B) ratio of 2.17. Compared to its 3-year average P/B ratio of 4.03 , the current P/B ratio is approximately -46.25% higher. Relative to its 5-year average P/B ratio of 4.02, the current P/B ratio is about -46.14% higher. Brown & Brown Inc (BRO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.02%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.19% , the current FCF yield is about -100.00% lower.
2.17
P/B
Median3y
4.03
Median5y
4.02
4.78
FCF Yield
Median3y
4.02
Median5y
4.19
Competitors Valuation Multiple
The average P/S ratio for BRO's competitors is , providing a benchmark for relative valuation. Brown & Brown Inc Corp (BRO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 35.41%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BRO decreased by 21.94% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.19B to 1.61B.
The secondary factor is the P/E Change, contributed -28.12%to the performance.
Overall, the performance of BRO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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