Brown Brown Valuation
| BRO Stock | USD 82.13 0.80 0.96% |
At this time, the firm appears to be undervalued. Brown Brown shows a prevailing Real Value of $97.45 per share. The current price of the firm is $82.13. Our model approximates the value of Brown Brown from analyzing the firm fundamentals such as Profit Margin of 0.21 %, current valuation of 26.99 B, and Return On Equity of 0.17 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Brown Brown's valuation include:
Price Book 4.189 | Enterprise Value 27 B | Enterprise Value Ebitda 17.2136 | Price Sales 5.5579 | Forward PE 22.7273 |
Undervalued
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.
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. | Historical | Market 82.13 | Real 97.45 | Target 78.8 | Hype 82.93 | Naive 82.63 |
The real value of Brown Stock, also known as its intrinsic value, is the underlying worth of Brown Brown Company, which is reflected in its stock price. It is based on Brown Brown's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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. 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 |
|
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 rated below average in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 290.12 Billion. Brown Brown holds roughly 23.66 Billion in market capitalization claiming about 8% of equities under Financials industry.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 rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.13 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Brown Brown is roughly 7.65 . As of the 24th of April 2024, Price To Book Ratio is likely to drop to 3.39. 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 stock 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 Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 1.5 B | |
| Pretax Profit Margin | 0.27 | 0.19 | |
| Operating Profit Margin | 0.29 | 0.30 | |
| Net Profit Margin | 0.20 | 0.12 | |
| Gross Profit Margin | 0.95 | 0.58 |
Brown Brown Quarterly Retained Earnings |
|
8 Steps to conduct Brown Brown's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Brown Brown's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Brown Brown's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Brown Brown's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Brown Brown's revenue streams: Identify Brown Brown's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Brown Brown's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Brown Brown's growth potential: Evaluate Brown Brown's management, business model, and growth potential.
- Determine Brown Brown's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Brown Brown's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 24th of April 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 24th of April 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 | 0.15 | 0.31 | |
| Dividend Paid And Capex Coverage Ratio | 15.30 | 11.29 |
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. 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.
| Common Stock Shares Outstanding | 280.8 M | |
| Quarterly Earnings Growth Y O Y | 0.229 | |
| Forward Price Earnings | 22.7273 |
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.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 tightly coupled 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Complementary Tools for Brown Stock analysis
When running Brown Brown's 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 the 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.
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |
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 0.229 | Dividend Share 0.36 | Earnings Share 3.24 | Revenue Per Share 15.505 | Quarterly Revenue Growth 0.134 |
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.