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:
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 46th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for BRO, they are:
The company's balance sheet shows it gets 86% of its capital from equity, and 14% of its capital from debt. Its equity weight surpasses that of 71.8% of free cash flow generating stocks in the Financial Services sector.
Brown & Brown Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 23.87% of tickers in our DCF set.
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 only 23.87% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BGCP, SAFT, SPGI, APAM, and SWKH can be thought of as valuation peers to BRO, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Brown & Brown (NYSE:BRO) is scheduled to announce Q4 earnings results on Monday, January 25th, after market close.The consensus EPS Estimate is $0.29 (+3.6% Y/Y) and the consensus Revenue Estimate is $623.34M (+7.7% Y/Y).Over the last 2 years, BRO has beaten EPS estimates 88% of the time and has beaten...
DAYTONA BEACH, Fla., Jan. 22, 2021 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE:BRO) today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.0925 per share. The dividend is payable on February 17, 2021 to shareholders of record on February 5, 2021. Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm, providing risk management solutions to individuals and businesses. With more than 80 years of proven success and thousands of teammates, we offer knowledge you can trust and strive to deliver superior customer service. For more information, please visit bbinsurance.com. R. Andrew Watts Chief Financial Officer (386) 239-5770
Property/casualty insurance companies far and wide are considering whether to develop technology platforms in-house or modernize some other way. Brown & Brown chose an acquisition to get there. The broker announced in November that it bought digital property/casualty insurance marketplace …