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
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Brown & Brown Inc. To summarize, we found that Brown & Brown Inc ranked in the 43th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 14.5%. The most interesting components of our discounted cash flow analysis for Brown & Brown Inc ended up being:
BRO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 32.64% of tickers in our DCF set.
Brown & Brown Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 10.61. This coverage rate is greater than that of 78.65% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Financial Services), Brown & Brown Inc has a reliance on debt greater than only 24.22% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BRO, try NDAQ, APAM, EV, FRFHF, and MORN.
Brown & Brown Lone Star Insurance Services, a subsidiary of Brown & Brown (BRO), has acquired substantially all of the assets of Brookstone Insurance Group. Brookstone Insurance Group provides commercial and personal insurance solutions to customers throughout the greater Dallas-Fort Worth metro area.Source: Press Release...
Insurance brokerage firm Brown & Brown's ([[BRO]] +0.4%) subsidiary in Tennessee has acquired Frank E. Neal, a provider of commercial, surety, personal and employee benefits insurance solutions throughout the Southeast region of the U.S.The Frank E. Neal team will join with the existing Brown & Brown of Tennessee team in Nashville.Deal terms were...
Brown & Brown Inc. has entered into an agreement to acquire the assets of HAUSER in Ohio. The deal is expected to close in September, subject to certain closing conditions. Terms were not disclosed. HAUSER focuses on insurance solutions for …
Insurance broker Brown & Brown, Inc. reported second quarter revenues of $598.8 million, an increase of $23.6 million, or 4.1%, compared to the second quarter of the prior year, Commissions and fees increased in the quarter by 4.4% and organic …