---
title: Brown & Brown (BRO) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/bro
ticker: BRO
as_of: 2026-10-17
sector: Financial Services
industry: Insurance - Brokers
---
# Brown & Brown (BRO)

Brown & Brown (BRO) closed at $69.40 on Oct 16, 2026, undervalued by 35% vs its model value of $106.53 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $69.40 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $106.53 |
| Price vs model | undervalued by 35% vs model |
| Range of that model | $55.87 – $299.95 |
| Market value | $23.2B |
| P/E (fiscal 2025) | 22.0 |
| Net margin (fiscal 2025) | 17.7% |
| Free cash flow (fiscal 2025) | $1.4B |
| Dividend yield (trailing twelve months) | 0.95% |
| Beta | 0.59 |
| Cost of capital (WACC) | 7.08% |
| Business classification | Mature & Stable (Moderate growth (~18% recent), Moderate margins (18% net margin), Moderately volatile earnings, Strong FCF yield (6.0%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Dividend growth streaks | #37 | 32 years | https://sweetvaluelab.com/lists/dividend-growth-streaks |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.95% |
| Dividends per share, last 12 months | $0.66 |
| Dividends / free cash flow (fiscal 2025) | 14.0% |
| Raised | 32 years in a row |
| Growth over 5 years | 12.3% a year |
| Latest payment | $0.165, ex-date Aug 12, 2026, paid Aug 19, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 10, 2021 | $0.37 |
| To Aug 9, 2022 | $0.41 |
| To Aug 8, 2023 | $0.46 |
| To Aug 7, 2024 | $0.52 |
| To Aug 13, 2025 | $0.60 |
| Trailing twelve months (to Aug 12, 2026) | $0.66 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $106.53 | $55.87 | $299.95 |
| DCF · Perpetuity growth · 10y | cross check | $113.33 | $62.20 | $310.82 |
| DCF · EBITDA exit · 5y | cross check | $97.67 | $67.25 | $133.47 |
| DCF · EBITDA exit · 10y | cross check | $105.50 | $71.18 | $151.10 |
| P/E · peers | cross check | $72.52 | $67.67 | $117.20 |
| P/E · own history | cross check | $110.20 | $96.59 | $122.10 |
| PEG | sanity check | $84.76 | $84.76 | $84.76 |
| EV/EBITDA · peers | cross check | $77.17 | $75.56 | $84.20 |
| EV/Revenue · peers | cross check | $62.67 | $55.22 | $73.42 |
| Earnings power value | cross check | $31.24 | $22.13 | $45.25 |
| Dividend discount | cross check | $17.88 | $11.71 | $32.40 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 21, 2026 | Hunt James S | Director | Bona fide gift | 5,000 | $0 |
| Sep 21, 2026 | Hunt James S | Director | Bona fide gift | 5,000 | $0 |
| Jun 9, 2026 | JOHNSON JOIA M | Director | Open-market buy | 860 | $49,923 |
| May 6, 2026 | KRUMP PAUL J | Director | Grant / award | 2,434 | $0 |
| May 5, 2026 | PROCTOR H PALMER JR | Director | Open-market buy | 2,000 | $114,200 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 10, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/79282/000119312526386867/bro-20260909.htm |
| Aug 10, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/79282/000119312526341162/bro-20260810.htm |
| Jul 27, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/79282/000119312526318251/bro-20260630.htm |
| Jul 27, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/79282/000119312526318245/bro-20260727.htm |
| Jun 5, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation | https://www.sec.gov/Archives/edgar/data/79282/000119312526259864/bro-20260605.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| First Eagle | 2026-06-30 | 11,727,514 | $752.3M |
| Francois Rochon | 2026-06-30 | 753,288 | $48.3M |
| Bridgewater | 2026-06-30 | 18,017 | $1.2M |
| Thomas Gayner | 2026-06-30 | 14,000 | $898,100 |

4 tracked managers in all.

## About

Brown & Brown, Inc. operates as an insurance brokerage firm, providing a diverse range of products and services throughout the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. The company's operations are strategically divided into four primary segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail division delivers a comprehensive suite of property and casualty, employee benefits, personal, and specialized insurance offerings, complemented by services such as loss control assessments, consulting, and claims processing. This segment caters to a broad spectrum of clients, including commercial entities, public and quasi-public organizations, professionals, and individuals. The National Programs segment focuses on professional liability and associated bundled insurance products for specific sectors like dentistry, law, optometr…

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Source: https://sweetvaluelab.com/stocks/bro (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.