Discounted Cash Flow

Brown & Brown, Inc.

BRO · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.8b $257.5m $357.4m 14.6% $1.84
2017 $1.9b (6.5%) $399.6m (55.2%) $417.8m (16.9%) 21.2% (45.7%) $2.86 (55.4%)
2018 $2.0b (7.1%) $344.3m (-13.9%) $526.0m (25.9%) 17.1% (-19.5%) $1.24 (-56.6%)
2019 $2.4b (18.8%) $398.5m (15.8%) $605.1m (15.0%) 16.7% (-2.5%) $1.42 (14.5%)
2020 $2.6b (9.2%) $480.5m (20.6%) $650.9m (7.6%) 18.4% (10.4%) $1.70 (19.7%)
2021 $3.1b (16.8%) $587.1m (22.2%) $897.4m (37.9%) 19.2% (4.7%) $2.08 (22.4%)
2022 $3.6b (17.1%) $671.8m (14.4%) $828.8m (-7.6%) 18.8% (-2.3%) $2.38 (14.4%)
2023 $4.3b (19.1%) $870.5m (29.6%) $940.6m (13.5%) 20.4% (8.8%) $3.07 (29.0%)
2024 $4.8b (12.9%) $993.0m (14.1%) $1.1b (16.1%) 20.7% (1.1%) $3.48 (13.4%)
2025 $5.9b (22.8%) $1.1b (6.1%) $1.4b (26.6%) 17.9% (-13.6%) $3.37 (-3.2%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model