Brown & Brown, Inc. (BRO): Price and Financial Metrics

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BRO Price/Volume Stats

Brown & Brown, Inc. (BRO) Company Bio

Brown & Brown markets and sells insurance products and services primarily in the United States, as well as in London, Bermuda, and the Cayman Islands. The Company's has four operating segments: the Retail Division provides insurance products and services to commercial public entity professional and individual customers; the National Programs Division provides professional liability and related package products for certain professionals and markets targeted products and services to industries trade groups public entities and market niches; the Wholesale Brokerage Division markets and sells excess and surplus commercial and personal insurance and reinsurance through agents and brokers; and the Services Division provides customers with third party claims administration consulting for the workers compensation insurance market comprehensive medical utilization management services. The company was founded in 1939 and is based in Daytona Beach, Florida.

BRO Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for Brown & Brown Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Brown & Brown Inc ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for BRO, they are:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 87. Notably, its equity weight is greater than 66.73% of US equities in the Financial Services sector yielding a positive free cash flow.
• BRO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 25.81% of tickers in our DCF set.

For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BRO, try SPGI, FCFS, MMC, GBLI, and MCO.