Update shared on 06 Nov 2025
Fair value Decreased 10%Analysts have revised Brown & Brown's fair value estimate downward from $108.33 to $97.08. This change reflects tempered expectations for the company's revenue growth and profitability.
What's in the News
- Brown & Brown is actively seeking acquisitions both domestically and internationally, with the goal of buying businesses that align culturally and financially with the company (Third Quarter Earnings Call).
- The company increased its equity buyback plan by $1,251 million. This brings total authorization to $2,023.5 million (company announcement).
- Brown & Brown completed the repurchase of 16,529,102 shares, representing 5.89%, for a total of $522.96 million under its long-term buyback program (company update).
- The board declared a regular quarterly cash dividend of $0.165 per share, a 10% increase from the previous dividend payment. This marks the 32nd consecutive annual dividend increase (company announcement).
Valuation Changes
- Fair Value Estimate: has declined from $108.33 to $97.08, reflecting a lower assessment of intrinsic value.
- Discount Rate: decreased slightly from 6.79% to 6.78%, indicating a marginal reassessment of risk.
- Revenue Growth: expectations have been reduced from 21.58% to 18.68%, suggesting more moderate future growth.
- Net Profit Margin: forecast has edged down from 18.03% to 17.93%, signaling slightly softer profitability projections.
- Future P/E Ratio: lowered from 33.19x to 30.80x, which implies a more conservative valuation outlook.
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