Using the industry peer median P/E multiple (trailing + forward), Brown & Brown, Inc. (BRO) has a fair value of $48.62 based on 7 comparable companies in the Insurance - Brokers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Brown & Brown, Inc.BRO | 20,386 | 20.6x | 17.3x |
| Truist Financial CorporationTFC | 56,050 | 11.7x | 13.5x |
| Fifth Third BancorpFITB | 30,370 | 12.8x | 14.4x |
| Cboe Global Markets, Inc.CBOE | 29,436 | 27.0x | 23.8x |
| Willis Towers Watson Public Limited CompanyWTW | 27,487 | 17.7x | 17.2x |
| W. R. Berkley CorporationWRB | 24,743 | 14.6x | 16.1x |
| Cincinnati Financial CorporationCINF | 24,460 | 10.4x | 11.4x |
| Huntington Bancshares IncorporatedHBAN | 22,916 | 11.1x | 12.9x |
| Industry Median | 12.8x | 14.4x | |
| (*) Profit after tax | 1,054 | 1,177 | |
| Equity Value | 13,534 | 16,904 | |
| (/) Outstanding shares | 313 | 313 | |
| Fair Price | $43 | $54 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.