BRO Valuation

Brown & Brown Inc

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94.110

-0.49(-0.518%)1D

Overview
Forecast
Valuation
Earnings

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 21.11 is considered Undervalued compared with the five-year average of 25.27. The fair price of Brown & Brown Inc (BRO) is between 126.34 to 145.47 according to relative valuation methord. Compared to the current price of 94.60 USD , Brown & Brown Inc is Undervalued By 25.12%.

Relative Value

Fair Zone

126.34-145.47

Current Price：94.60

25.12%

Undervalued

21.11

Trailing

Forward

12.45

EV/EBITDA

Brown & Brown Inc. (BRO) has a current EV/EBITDA of 12.45. The 5-year average EV/EBITDA is 16.78. The thresholds are as follows: Strongly Undervalued below 13.13, Undervalued between 13.13 and 14.96, Fairly Valued between 18.60 and 14.96, Overvalued between 18.60 and 20.42, and Strongly Overvalued above 20.42. The current Forward EV/EBITDA of 12.45 falls within the Strongly Undervalued range.

13.61

EV/EBIT

Brown & Brown Inc. (BRO) has a current EV/EBIT of 13.61. The 5-year average EV/EBIT is 19.62. The thresholds are as follows: Strongly Undervalued below 15.74, Undervalued between 15.74 and 17.68, Fairly Valued between 21.56 and 17.68, Overvalued between 21.56 and 23.50, and Strongly Overvalued above 23.50. The current Forward EV/EBIT of 13.61 falls within the Strongly Undervalued range.

4.44

Brown & Brown Inc. (BRO) has a current PS of 4.44. The 5-year average PS is 5.00. The thresholds are as follows: Strongly Undervalued below 3.58, Undervalued between 3.58 and 4.29, Fairly Valued between 5.71 and 4.29, Overvalued between 5.71 and 6.42, and Strongly Overvalued above 6.42. The current Forward PS of 4.44 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Brown & Brown Inc. (BRO) has a current P/OCF of 0.00. The 5-year average P/OCF is 14.69. The thresholds are as follows: Strongly Undervalued below -6.22, Undervalued between -6.22 and 4.24, Fairly Valued between 25.15 and 4.24, Overvalued between 25.15 and 35.60, and Strongly Overvalued above 35.60. The current Forward P/OCF of 0.00 falls within the Undervalued range.

19.28

P/FCF

Brown & Brown Inc. (BRO) has a current P/FCF of 19.28. The 5-year average P/FCF is 21.17. The thresholds are as follows: Strongly Undervalued below 13.48, Undervalued between 13.48 and 17.32, Fairly Valued between 25.02 and 17.32, Overvalued between 25.02 and 28.86, and Strongly Overvalued above 28.86. The current Forward P/FCF of 19.28 falls within the Historic Trend Line -Fairly Valued range.

Brown & Brown Inc (BRO) has a current Price-to-Book (P/B) ratio of 2.69. Compared to its 3-year average P/B ratio of 4.21 , the current P/B ratio is approximately -36.00% higher. Relative to its 5-year average P/B ratio of 4.10, the current P/B ratio is about -34.31% higher. Brown & Brown Inc (BRO) has a Forward Free Cash Flow (FCF) yield of approximately 4.09%. Compared to its 3-year average FCF yield of 4.01%, the current FCF yield is approximately 1.94% lower. Relative to its 5-year average FCF yield of 4.26% , the current FCF yield is about -3.88% lower.

2.69

P/B

Median3y

4.21

Median5y

4.10

4.09

FCF Yield

Median3y

4.01

Median5y

4.26

Competitors Valuation Multiple

The average P/S ratio for BRO's competitors is 4.14, providing a benchmark for relative valuation. Brown & Brown Inc Corp (BRO) exhibits a P/S ratio of 4.44, which is 7.20% above the industry average. Given its robust revenue growth of 9.08%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Willis Towers Watson PLC

Ryan Specialty Holdings Inc

Goosehead Insurance Inc

Performance Decomposition

Market capitalization of BRO decreased by 9.89% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.18B to 1.29B.

The secondary factor is the P/E Change, contributed -1.78%to the performance.

Overall, the performance of BRO in the past 1 year is driven by Revenue Growth. Which is more sustainable.

9.08%

1.18B → 1.29B

Revenue Growth

-17.19%

21.99 → 18.21

Margin Expansion

-1.78%

27.72 → 27.23

P/E Change

-9.89%