Brown Brown Valuation
| BRO Stock | USD 110.75 1.14 1.04% |
At this time, the firm appears to be overvalued. Brown Brown shows a prevailing Real Value of $85.36 per share. The current price of the firm is $110.75. Our model approximates the value of Brown Brown from analyzing the firm fundamentals such as Return On Equity of 0.18, profit margin of 0.23 %, and Current Valuation of 34.07 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Brown Brown's valuation include:
Price Book 4.8375 | Enterprise Value 34.1 B | Enterprise Value Ebitda 18.9114 | Price Sales 6.8756 | Forward PE 26.8097 |
Overvalued
Today
Please note that Brown Brown's price fluctuation is very steady at this time. Calculation of the real value of Brown Brown is based on 3 months time horizon. Increasing Brown Brown's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Brown Brown is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Brown Stock. However, Brown Brown's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 110.75 | Real 85.36 | Target 78.8 | Hype 110.82 | Naive 109.95 |
The intrinsic value of Brown Brown's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Brown Brown's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Brown Brown helps investors to forecast how Brown stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Brown Brown more accurately as focusing exclusively on Brown Brown's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Brown Brown's intrinsic value based on its ongoing forecasts of Brown Brown's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Brown Brown's closest peers.
Brown Brown Cash |
|
Brown Valuation Trend
Knowing Brown Brown's actual value is paramount for traders when making sound investment determinations. Using both Brown Brown's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Brown Revenue by Product
Brown Brown Total Value Analysis
Brown Brown is currently projected to have company total value of 34.07 B with market capitalization of 31.34 B, debt of 3.97 B, and cash on hands of 650 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Brown Brown fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
34.07 B | 31.34 B | 3.97 B | 650 M |
Brown Brown Investor Information
About 16.0% of the company shares are held by company insiders. The book value of Brown Brown was currently reported as 22.6. The company last dividend was issued on the 6th of November 2024. Brown Brown had 2:1 split on the 29th of March 2018. Based on the analysis of Brown Brown's profitability, liquidity, and operating efficiency, Brown Brown may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.26 | 0.25 |
|
| |||||
| Total Cash From Operating Activities | 1.1 B | 1 B |
|
| |||||
| Operating Income | 1.2 B | 1.1 B |
|
|
Brown Brown Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Brown Brown has an asset utilization ratio of 28.6 percent. This suggests that the Company is making $0.29 for each dollar of assets. An increasing asset utilization means that Brown Brown is more efficient with each dollar of assets it utilizes for everyday operations.Brown Brown Ownership Allocation
Brown Brown holds a total of 285.96 Million outstanding shares. The majority of Brown Brown outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Brown Brown to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Brown Brown. Please pay attention to any change in the institutional holdings of Brown Brown as this could imply that something significant has changed or is about to change at the company. Please note that on August 21, 2024, Representative Jared Moskowitz of US Congress acquired under $15k worth of Brown Brown's common stock.Brown Brown Profitability Analysis
The company reported the last year's revenue of 4.26 B. Total Income to common stockholders was 870.5 M with profit before taxes, overhead, and interest of 1.75 B.Brown Brown Past Distributions to stockholders
About Brown Brown Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Brown Brown. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Brown Brown based exclusively on its fundamental and basic technical indicators. By analyzing Brown Brown's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Brown Brown's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Brown Brown. We calculate exposure to Brown Brown's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Brown Brown's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 1.5 B | |
| Pretax Profit Margin | 0.27 | 0.19 | |
| Operating Profit Margin | 0.25 | 0.26 | |
| Net Profit Margin | 0.20 | 0.12 | |
| Gross Profit Margin | 0.33 | 0.56 |
Brown Brown Quarterly Retained Earnings |
|
A single share of Brown Brown represents a small ownership stake in the entity. As a stockholder of Brown, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Brown Brown Dividends Analysis For Valuation
At this time, Brown Brown's Dividends Paid is very stable compared to the past year. As of the 22nd of November 2024, Dividend Payout Ratio is likely to grow to 0.31, while Dividend Yield is likely to drop 0.01. . At this time, Brown Brown's Retained Earnings are very stable compared to the past year. As of the 22nd of November 2024, Earnings Yield is likely to grow to 0.06, while Retained Earnings Total Equity is likely to drop about 2.5 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 134.9 M | 141.6 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.16 | 0.31 | |
| Dividend Paid And Capex Coverage Ratio | 4.95 | 3.16 |
There are various types of dividends Brown Brown can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Brown shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Brown Brown directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Brown pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Brown Brown by the value of the dividends paid out.
Brown Brown Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 280.8 M | |
| Quarterly Earnings Growth Y O Y | 0.311 | |
| Forward Price Earnings | 26.8097 |
Brown Brown Current Valuation Indicators
Brown Brown's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Brown Brown's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Brown Brown, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Brown Brown's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Brown Brown's worth.When determining whether Brown Brown offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Brown Brown's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Brown Brown Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Brown Brown Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Brown Brown. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Brown Stock, please use our How to Invest in Brown Brown guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brown Brown. If investors know Brown will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brown Brown listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.311 | Dividend Share 0.52 | Earnings Share 3.67 | Revenue Per Share 16.261 | Quarterly Revenue Growth 0.099 |
The market value of Brown Brown is measured differently than its book value, which is the value of Brown that is recorded on the company's balance sheet. Investors also form their own opinion of Brown Brown's value that differs from its market value or its book value, called intrinsic value, which is Brown Brown's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brown Brown's market value can be influenced by many factors that don't directly affect Brown Brown's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brown Brown's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brown Brown is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brown Brown's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.