What is Brown & Brown, Inc. (BRO) DCF Fair Value and Intrinsic Value in 2026?

Brown & Brown, Inc. (BRO) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Brown & Brown, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Brown & Brown, Inc. operates in the Financials sector (Insurance Brokers) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Brown & Brown, Inc.'s financial health rating and Piotroski F-Score?

Brown & Brown, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Brown & Brown, Inc. (BRO) for quarterly SEC filing thesis breaks?

LocalAlpha audits Brown & Brown, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBRO

BRO

Brown & Brown, Inc.Financial Services / Insurance BrokersINTACT

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. The Retail segment provides property and casualty insurance products, employee benefits insurance products, personal insurance products, specialties insurance products, risk management strategies, loss control surveys and analysis, consulting, 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, professionals, 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, financial services, physicians, and 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, as well as 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 program businesses operate under the Arrowhead Programs name. The company was formerly known as Poe & Brown, Inc. and changed its name to Brown & Brown, Inc. in April 1999. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.

Share Price

$66.19

52W: $53.81 - $96.55

DCF Fair Value

$135.45

+51.1% MoS

Thesis Hub

P/E (TTM)

21.1x

ROIC

31.4%

Operating Margin

41.8%

FCF Yield

7.4%

Debt / Equity

0.64x

Piotroski Score

8/9

Altman Z-Score

3.27

Market Cap

$22.1B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$135.45

MOS Buy Target (-25%)

$101.59

Valuation Overlays: DCF Fair Value ($135.45) 25% MOS Buy Target ($101.59) Revised Graham ($110.46) Graham Number ($51.82)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$66.19

DCF Fair Value

$135.14

+51% MoS

Starting Free Cash Flow ($M)$1,643M

$100M$1,643M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$7,200M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$21.3B

PV of Terminal Value

$31.2B

Implied Enterprise Value

$52.5B

Implied Equity Value

$45.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,939	$2,288	$2,700	$3,185	$3,759	$3,928	$4,105	$4,289	$4,482	$4,684
Present Value (PV)	$1,779	$1,926	$2,085	$2,257	$2,443	$2,342	$2,245	$2,153	$2,064	$1,979

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-27.7% Premium

$51.82

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.13BVPS: $38.13

Revised Graham Formula+40.1% MoS

$110.46

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings7% Yield

$4.66 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.6BYield: 7%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.4% CAGR (Next 10 Yrs)

At the current price of $66.19, the market is assuming the business will compound Free Cash Flow at 0.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BRO with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Brown & Brown, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 41.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Brown & Brown, Inc. (BRO) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Brown & Brown, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Brown & Brown, Inc. has an estimated DCF intrinsic fair value of $135.45 per share compared to its current market price of $66.19. This represents an estimated 51.1% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $51.82.