Brown & Brown, Inc. (BRO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+85.5%

$132.19

vs $71.27 price

Levered DCF

$167.78

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.69

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.44×	29.32×	23.16×	23.94×	33.79×	27.89×	27.8×	22.23×
P/B	1.97×	4.47×	3.58×	3.44×	4.62×	3.48×	3.21×	2.59×
P/S	4.29×	6.11×	4.76×	4.45×	6.37×	5.01×	4.51×	3.87×
EV / EBITDA	15.92×	18.63×	15.03×	16.01×	21.36×	17.79×	16.68×	14.44×
Gross margin	49.1%	48.9%	47.9%	49.0%	46.3%	44.9%	45.1%	46.8%
Operating margin	49.1%	29.1%	27.5%	27.0%	28.0%	25.7%	23.9%	24.8%
Net margin	18.3%	21.1%	20.7%	18.9%	19.3%	18.4%	16.7%	17.1%
Current ratio	1.04×	1.1×	1.04×	1.09×	1.25×	1.26×	1.22×	1.22×
Debt / equity	0.63×	0.63×	0.72×	0.91×	0.54×	0.62×	0.53×	0.5×
Interest coverage	9.52×	6.8×	5.87×	6.51×	13.15×	11.34×	8.97×	12.31×
Dividend yield	0.8%	0.5%	0.7%	0.8%	0.6%	0.8%	0.8%	1.1%
Payout ratio	18.4%	15.5%	15.5%	17.9%	18.3%	20.9%	22.9%	24.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.4%	15.4%	15.6%	14.6%	14.0%	12.8%	11.9%	11.5%
Return on invested capital	9.8%	9.1%	8.3%	7.6%	9.1%	7.7%	7.6%	7.5%
Return on assets	3.5%	5.6%	5.8%	4.8%	6.0%	5.4%	5.2%	5.1%
Free cash flow yield	5.6%	3.8%	4.7%	5.2%	3.9%	4.9%	5.6%	6.8%
Earnings yield	4.3%	3.5%	4.4%	4.2%	3.0%	3.7%	3.7%	4.4%
Enterprise value	$31.5B	$32.2B	$23.3B	$19.4B	$21B	$14.5B	$12B	$8.8B
Net debt / EBITDA	3.45×	1.96×	2.14×	2.92×	1.58×	1.83×	1.7×	1.74×
Cash conversion cycle (days)	105	218	101	184	99	-193	-158	-157