DCF Studio

    BRO · NYQ · Financial Services

    Brown & Brown, Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 156.87

    Market price

    USD 71.88

    Implied upside

    +118.2%

    10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    NoteA financial, valued on excess returns over book equity.

    Excess Returns

    Return on equity
    17.6%
    Payout
    16%
    Cost of equity
    7.77%
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Opening book equityUSD 12.5bnUSD 14.3bnUSD 16.0bnUSD 17.8bnUSD 19.6bnUSD 21.2bnUSD 22.8bnUSD 24.2bnUSD 25.4bnUSD 26.4bn
    Return on equity17.6%17.6%17.6%17.6%17.6%17.6%17.6%17.6%17.6%17.6%
    Excess returnUSD 1.2bnUSD 1.4bnUSD 1.6bnUSD 1.7bnUSD 1.9bnUSD 2.1bnUSD 2.2bnUSD 2.4bnUSD 2.5bnUSD 2.6bn
    Present valueUSD 1.1bnUSD 1.2bnUSD 1.3bnUSD 1.3bnUSD 1.3bnUSD 1.3bnUSD 1.3bnUSD 1.3bnUSD 1.3bnUSD 1.2bn
    Book equityUSD 12.5bn
    Present value of excess returnsUSD 12.7bn
    Terminal, growing at 2.50%USD 23.9bn
    Equity valueUSD 49.1bn
    Per shareUSD 156.87

    Discount Rate

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.679Reported 0.521, pulled toward 1.0 (Blume)
    Cost of equity7.77%Risk-free + beta x equity risk premium
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    Yahoo Finance and RBA data. General information, not advice. Methodology.