BRO - Brown & Brown, Inc.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$72.50
DETAILS
HIGH:
$90.00
LOW:
$55.00
MEDIAN:
$72.50
CONSENSUS:
$72.50
DOWNSIDE:
1.10%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
8.4%
7.5%
Key Value Driver
ROTCE (8.4%) vs. cost of equity (7.5%)
Implied Market Multiple
1.96x
Plain-Language Summary
With ROTCE of 8.4% vs. 7.5% cost of equity, fair P/TBV is 1.26x on $37.50 tangible book, implying $47.20 per share.
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.
Average Target (31 analysts)
$72.50
Analyst Range
$55.00 – $90.00
Divergence from AlphaVal
35%
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Wall Street's average price target is $72.50 (from 31 analysts). Our estimate is 35% below the consensus -- consider that gap carefully.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly