Brown & Brown Inc (BRO) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Brown & Brown Inc stock $35.14, price $74.38, that is 52.8% below the price, quality 46 out of 100. Rating: strongly overvalued. Calculated from audited financials with 4 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $51.67 – $122.88 · fair‑value band $30.71 – $42.99 · the $74.38 price screens above the $35.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Brown & Brown, Inc. markets and sells insurance products and services in the United States, the United Kingdom, and internationally. It operates through Retail and Specialty Distribution segments.
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The Retail segment provides property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, risk management strategies, loss control survey and analysis, consultancy, and claims processing services.
This segment also offers non-insurance services and products through automobile and recreational vehicle dealer services businesses. It serves commercial, public and quasi-public entities, professional, and individual customers.
The Specialty Distribution segment comprises wholesale brokerage and specialty businesses.
This segment offers professional liability and related package insurance products for dentistry, legal, eyecare, insurance, insurance, financial, physicians, real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities.
This segment also provides public entity-related and specialty programs through a network of independent agents; and program management services for insurance carrier partners.
In addition, the company's wholesale brokerage businesses underwrite and place excess and surplus commercial and personal lines insurance through independent agents and brokers. Its programs businesses operate under the Arrowhead Programs' name.
Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.
Stock analysis
Brown & Brown Inc (BRO) currently trades at $74.38, while our model-based Fair Value estimate is $35.14, 53% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $40.95 per share, and 0 of the 4 models we run sit above the $74.38 price.
Bear case: the Dividend Discount group reads lowest at $10.27, and 4 of the 4 models stay below the price. Data coverage for this calculation is high.
Scenario range: $30.71 (bear) to $42.99 (bull), the price of $74.38 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 46/100 (below-average quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Brown & Brown Inc reported revenue of $6.0B in FY2025 versus $3.0B in FY2021, a compound +18.2%/yr. Reported net income was $1.1B in FY2025, compounding +15.8%/yr from FY2021.
Key figures
Market cap $25.2B Large · P/E ratio 23.5 · P/S ratio 3.78 · EPS (TTM) $3.17 · Dividend yield 0.9% · Net margin 18.1% · Return on equity 10.0% · Return on assets (EBIT) 7.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 67 out of 100 (low confidence).
What moves the price
The share trades about 9% below its 52-week high and 37% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −61% fair-value upside, at −53%, BRO screens cheaper than that median.
Fair Value models
Bear$30.71Fair Value $35.14Bull$42.99
Price $74.38 · Downside -52.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.14 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $49,923, on Jun 9, 2026.
BuyJoia M JohnsonDirector860 shares at $58.05$49,923Jun 9, 2026
BuyH Palmer Proctor JrDirector2,000 shares at $57.10$114,200May 5, 2026
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+26.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.0%
Start year 2020 (pandemic). Over 10 years: +13.6% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.3%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+15.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+14.1%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.14.1% vs 14.5%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.26% → 29%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+9.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +5.6% a year for the price and +6.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Moderate moat potential rests on stable margins in insurance brokerage while thin evidence and modest ROE reveal insufficient proof of lasting competitive strength.
Main risk: Rival Howden could continue recruiting Brown & Brown employees and soliciting their clients through targeted campaigns, reducing revenue from lost accounts and raising retention costs.
Bull case: By scaling its AI-first model and integrating recent acquisitions, Brown & Brown could boost advisor productivity and strengthen client relationships enough to offset talent losses.
Bear case: If poaching by Howden and similar rivals intensifies, Brown & Brown might suffer sustained revenue erosion in key markets and higher ongoing legal expenses that weaken its brokerage platform.
Brown & Brown continues to expand its real estate insurance partnerships, most recently into Canada, while investing in an AI-first operating model through external experts. Yet organic revenue has turned negative amid soft pricing and elevated costs from competing for talent. Can the productivity gains from this rewiring outweigh the ongoing margin pressures and slower core growth?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance Brokers · 31 stocks
Beats the industry median on 4/14 measures
Overall it trails its industry peers.
Valuation
Quality Score46 · Bottom 25%
Fair Value upside−52.8% · Above median
Profitability
Return on equity (12 months)10.0% · Bottom 25%
Return on assets3.5% · Below median
Net margin (12 months)18.1% · Top 25%
Operating margin (12 months)41.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)32.4% · Top 25%
Dividend yield (12 months)0.9% · Bottom 25%
Balance sheet
Debt / equity0.55× · Above median
Valuation Multiplesvs Insurance Brokers median · lower = cheaper
P/E (12 months)23.5× · Pricier than median
P/B2.01× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)3.78× · Pricier than median
Price / free cash flow18.3× · Pricier than median
EV/EBITDA10.7× · Pricier than median
PEG1.81× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 26
PAST (return on equity)40· sector 69
HEALTH (low debt)73· sector 74
DIVIDEND (yield)17· sector 67
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Brown & Brown Inc Fair Value". https://www.fairvalue-calculator.com/stock/BRO
Frequently asked questions
Is Brown & Brown Inc (BRO) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $35.14 versus a price of $74.38, about 53% lower (overvalued).
What is the fair value of BRO?
Our model-based fair value for Brown & Brown Inc is $35.14 (as of Nov 5, 2026), built from audited fundamentals. The current price: $74.38.
What is the quality score of BRO?
Brown & Brown Inc has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Brown & Brown Inc (BRO)?
Our model-based price target is the fair value of $35.14 (as of Nov 5, 2026) from 4 valuation models. Cautious scenario $30.71, optimistic scenario $42.99. It is a calculation from audited fundamentals, not an analyst target.
What is the Brown & Brown Inc stock forecast for 2026?
Our models put fair value at $35.14, about 53% lower versus a price of $74.38 (overvalued). Cautious scenario $30.71, optimistic scenario $42.99. The calculation is refreshed regularly with new filings.
What is the revenue of Brown & Brown Inc (BRO)?
Brown & Brown Inc reported trailing-twelve-month revenue of about $6.7B (latest available figure, as of Nov 5, 2026).
Does Brown & Brown Inc pay a dividend?
Brown & Brown Inc currently shows a dividend yield of 0.87% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Brown & Brown Inc (BRO)?
For today's price to be fair in a discounted-cash-flow model, Brown & Brown Inc would have to grow free cash flow by +8.1 % per year for five years (discount rate 8.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +18.0 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of BRO use?
Our models discount Brown & Brown Inc at 8.3 %: a base by market capitalisation (large), damped by beta 0.59, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Brown & Brown Inc that is +8.1 % per year a year over ten years, using the same discount rate (8.3 %) and the same formula as our fair value.
How much growth has Brown & Brown Inc (BRO) delivered so far?
Over the past 5 years revenue at Brown & Brown Inc grew +18.0 % a year. The price currently implies +8.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Brown & Brown Inc (BRO) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Brown & Brown Inc (+8.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Brown & Brown Inc (BRO)?
The free-cash-flow yield on the price is 5.48 %: that much free cash flow Brown & Brown Inc produces per unit of market value. When it exceeds the discount rate of our models (8.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Brown & Brown Inc (BRO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Brown & Brown Inc it is $35.14 per share (as of Nov 5, 2026), against a price of $74.38. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Brown & Brown Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, BRO trades above its calculated fair value: price $74.38, fair value $35.14, a gap of about −53% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BRO?
No. The price is what the market pays today ($74.38); the fair value is what the company's own numbers justify ($35.14). For Brown & Brown Inc the two are $39.24 per share apart. That gap is exactly why we show both numbers side by side.
How much is Brown & Brown Inc worth?
The market values Brown & Brown Inc at about $25.2B (market capitalisation, as of Nov 5, 2026). Per share that is $74.38; our models calculate a fair value of $35.14 per share.
What do the bullish and bearish scenarios say about BRO?
Our models span a range for Brown & Brown Inc: cautious scenario $30.71, base $35.14, optimistic $42.99 per share (as of Nov 5, 2026, price $74.38). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BRO?
Brown & Brown Inc trades at a price-to-earnings ratio of 23.5 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $35.14 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 17.5 (reported for FY2025: 23.9). Median P/E at fiscal year-end, 8 fiscal years (2018 to 2025), reported earnings, FY2023, FY2025 ex one-offs: 27.2. Other multiples: PEG 1.8, P/B 2.0, P/S 3.8, EV/EBITDA 10.7.
What is the PEG ratio of BRO?
The PEG ratio of Brown & Brown Inc is 1.81 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Brown & Brown Inc (BRO)?
Balance-sheet figures for Brown & Brown Inc (as of Nov 5, 2026): return on equity 10.0%, debt of 0.55 per unit of equity. They feed the Quality Score of 46/100, which measures business quality independently of the share price.
How far is BRO from its 52-week high?
Brown & Brown Inc trades at $74.38, about 9% below its 52-week high of $81.71 and 37% above the low of $54.25 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $35.14 is for.
Which stocks are comparable to Brown & Brown Inc?
From the same area (Financial Services) we also value Marsh & McLennan Companies, Inc, Arthur J. Gallagher & Co, Aon plc, Willis Towers Watson Public Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Brown & Brown Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $74.38, calculated fair value $35.14 (−53%), Quality Score 46/100, from 4 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BRO calculated?
We run Brown & Brown Inc through 4 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $35.14, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Brown & Brown Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Brown & Brown Inc (BRO)?
The closing price on Nov 5, 2026 was $74.38. Our model-based fair value is $35.14, about 53% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Brown & Brown Inc right now?
The price sits above even our optimistic bull case ($42.99). The favourable scenario is already priced in. Weak quality (46/100) and above fair value at the same time, the margin of safety is missing on both counts. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Brown & Brown Inc (BRO) come from?
Earnings per share at Brown & Brown Inc grew +16.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.4 %, EBIT margin +0.7 %, tax rate +2.6 %, residual (interest, one-offs) +0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Brown & Brown Inc
How large is the market capitalisation of Brown & Brown Inc (BRO)?
The market capitalisation of Brown & Brown Inc is $25.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Brown & Brown Inc (BRO)?
The price-to-sales ratio of Brown & Brown Inc is 3.78 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Brown & Brown Inc (BRO)?
Earnings per share at Brown & Brown Inc are $3.17 (price ÷ EPS = P/E 23.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Brown & Brown Inc (BRO)?
The dividend yield of Brown & Brown Inc is 0.9% (payout 14.9%, on adjusted earnings, reported 20.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Brown & Brown Inc (BRO)?
The net margin of Brown & Brown Inc is 18.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Brown & Brown Inc (BRO)?
The return on equity (ROE) of Brown & Brown Inc is 10.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Brown & Brown Inc (BRO)?
On an EBIT basis the return on assets of Brown & Brown Inc is 7.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Brown & Brown Inc (BRO)?
The operating margin of Brown & Brown Inc is 41.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Brown & Brown Inc (BRO)?
Revenue at Brown & Brown Inc is growing +32.4% versus a year earlier (3y avg +18.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Brown & Brown Inc (BRO)?
Earnings per share at Brown & Brown Inc are growing +7.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Brown & Brown Inc (BRO) carry?
The net debt of Brown & Brown Inc is $6.8B (fiscal year 2025, ≈ 4.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026