Brown Stock Valuation

BRO
 Stock
  

USD 59.06  1.77  3.09%   

What is the current enterprise value of Brown Brown? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Brown Brown, is its stock price multiplied by the total number of shares outstanding, calculating Brown Brown's enterprise value requires a different approach. It uses Brown Brown's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is expected to rise to about 22.3 B this year, although the value of Free Cash Flow will most likely fall to about 750.5 M.
Brown Brown shows a prevailing Real Value of $61.71 per share. The current price of the firm is $59.06. At this time, the firm appears to be undervalued. Our model approximates the value of Brown Brown from analyzing the firm fundamentals such as Return On Equity of 14.88 %, profit margin of 19.35 %, and Current Valuation of 19.56 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Brown Brown Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Brown Brown's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Brown Most Recent Valuation Data

Price Book
3.57
Enterprise Value
17.5 B
Enterprise Value Ebitda
17.22
Price Sales
5.31
Forward PE
23.42
Trailing PE
27.6
Enterprise Value Revenue
5.58
Undervalued
Today 59.06
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.
Our valuation method for Brown Brown is useful when determining the fair value of the Brown stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Brown Brown. 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.
61.71
Real Value
63.21
Upside
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:
Earnings
Estimates (4)
LowProjected EPSHigh
2.152.162.17
Details
Hype
Prediction
LowEstimated ValueHigh
57.4558.9560.45
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.150.150.15
Details
8 Analysts
Consensus
LowTarget PriceHigh
53.0065.7580.00
Details
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. When choosing an evaluation method for Brown Brown, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Brown Brown Investments

40.13 Million

Share

Brown Valuation Drivers Correlation

Many accounts on the financial statements of Brown Brown are highly interrelated and sometimes correlated. Consequently, when conducting Brown's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Brown
Click cells to compare fundamentals

Brown Valuation Trend

Knowing Brown Brown's actual value is paramount for traders to make sound investment determinations. Brown Brown's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Brown Brown's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Brown Brown's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Brown Market Cap

Brown Brown is number one stock in market capitalization category among related companies. Market capitalization of Insurance Brokers industry is currently estimated at about 1.81 Trillion. Brown Brown maintains roughly 15.5 Billion in market capitalization contributing less than 1% to equities under Insurance Brokers industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Brown Brown Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Brown Brown's current stock value. Our valuation model uses many indicators to compare Brown Brown value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Brown Brown competition to find correlations between indicators driving Brown Brown's intrinsic value. More Info.
Brown Brown is number one stock in price to book category among related companies. It is number one stock in price to earning category among related companies reporting about  7.10  of Price to Earning per Price to Book. The value of Price to Earnings Ratio is estimated to slide to 31.27. The value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to slide to about 859.8 M. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brown Brown by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brown Brown's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Brown Brown's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Brown Brown's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Brown Brown and how it compares across the competition.

About Brown Brown Valuation

The equity valuation mechanism determines the current worth of Brown Brown on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Brown Brown's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Brown Brown's related companies.
Last ReportedProjected for 2022
Gross Profit3.1 B2.7 B
Profit Margin 0.19  0.20 
Brown Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. The company was founded in 19 and is headquartered in Daytona Beach, Florida. Brown Brown operates under Insurance Brokers classification in the United States and is traded on New York Stock Exchange. It employs 12023 people.

Brown Brown Quarterly Enterprise Value

21.13 Billion

Share
Brown Brown's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Brown Brown's value is low or high relative to the company's performance and growth projections. Determining the market value of Brown Brown can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Dividend Yield is expected to rise to 0.007179 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (115.7 M). . The value of Accumulated Retained Earnings Deficit is expected to slide to about 3.5 B. The value of Earning Before Interest and Taxes EBIT is expected to slide to about 717 M
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-107.2 M-115.7 M
Dividend Yield 0.005  0.007179 
Dividends per Basic Common Share 0.38  0.35 
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 Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Brown Brown does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.26
Earnings Quarterly Growth10.30%
Revenue Growth11.00%
Payout Ratio18.22%
Enterprise Value To Ebitda18.84
Earnings Growth10.00%
Enterprise Value To Revenue6.23

Brown Brown Current Valuation Indicators

Valuation refers to the process of determining the present value of Brown Brown and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Brown we look at many different elements of the entity such as Brown's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Brown Brown's valuation analysis is also 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.
Continue to Trending Equities. Note that the Brown Brown information on this page should be used as a complementary analysis to other Brown Brown's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Brown Brown price analysis, check to measure Brown Brown's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brown Brown is operating at the current time. Most of Brown Brown's value examination focuses on studying past and present price action to predict the probability of Brown Brown's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Brown Brown's price. Additionally, you may evaluate how the addition of Brown Brown to your portfolios can decrease your overall portfolio volatility.
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Is Brown Brown's industry 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 YOY
0.1
Market Capitalization
16.7 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.055
Return On Equity
0.15
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 Brown Brown value 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.