Brown & Brown, Inc. BRO
Brown & Brown's FY2025 results reveal acquisition-driven revenue growth of 26.6% to $5.96B masking a deteriorating earnings profile: diluted EPS fell 8.7% to $3.16 while total debt nearly doubled to $7.92B and net income grew only 6.1%. The stock trades at a 45% PE premium to the peer median of 14.0x and a 51% PS premium, yet its 13.0x EV/EBITDA sits 14% below the peer median — a valuation split that reflects market uncertainty about organic versus deal-driven growth.
With smart money slightly negative at -0.025 as of Q2 2026, insiders net-selling 215K shares over 24 months, and FCF margin holding at 23.2%, the risk-reward remains balanced but unattractive; hold until evidence of organic growth reacceleration or debt paydown emerges.
What could go wrong
- Acquisition integration and dilution. Total debt nearly doubled to $7.92B and diluted EPS fell 8.7% to $3.16 in FY2025, suggesting the large acquisition may not be accretive and integration risk remains elevated.
- Valuation premium vulnerability. PE of 20.25x sits 45% above the peer median of 14.0x and PS of 3.58x is 51% above the median of 2.37x, leaving the stock exposed to de-rating if growth disappoints.
- Institutional sentiment softening. Smart money score is negative at -0.025 as of 2026-06-30, and Madison Mid Cap Fund listed BRO as a Q2 2026 bottom detractor, indicating some institutional fatigue.
- Insider net selling. Over the past 24 months insiders net-sold 215,112 shares for -$5.8M, with 59 transactions including 14 dispositions versus 45 acquisitions — modest but directionally negative.
What would change my mind
Where this comes from: FMP FY2025 vs FY2024 fundamentals · FMP FY2025 vs FY2024, derived_metrics · FMP FY2025 balance sheet · derived_metrics FY2025. Orin's read on BRO; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All BRO filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $1.2B | 0.0% of fund |
| Fmr | $1.2B | 0.1% of fund |
| Vanguard Portfolio Management | $938.6M | 0.0% of fund |
| State Street | $931.1M | 0.0% of fund |
| Capital World Investors | $928.0M | 0.1% of fund |
| Geode Capital Management | $526.0M | 0.0% of fund |
80 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 61 Form 4 filings, net −$5.8M. Of the 50 on hand, 4 were open-market purchases and 0 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about BRO
Orin answers questions about BRO from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 16.7× | 23.6× | 21.6× |
| EV/EBITDA | 11.2× | 16.0× | — |
| P/S | 2.95× | 4.76× | — |
| P/B | 1.6× | 3.6× | — |
Its P/E sits below all 5 of the last 5 years (−2.44σ from its own mean).
3.4%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.4B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$73
$55 – $90 · +18% against today's price
- 10 buy or overweight
- 20 hold
- 1 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| BROBrown & Brown, Inc. | $20B | 16.7× | 11.2× | 59.0% | 17.6% | 10% |
| CBOECboe Global Markets, Inc. | $28B | 20.8× | 13.3× | 52.3% | 26.7% | 26% |
| CINFCincinnati Financial Corporation | $25B | 7.6× | 5.5× | 52.3% | 23.8% | 21% |
| FITBFifth Third Bancorp | $47B | 17.4× | 18.6× | 68.5% | 15.8% | 8% |
| HBANHuntington Bancshares Incorporated | $31B | 11.3× | 14.2× | 63.7% | 16.6% | 9% |
| TFCTruist Financial Corporation | $59B | 10.7× | 17.0× | 64.0% | 19.1% | 9% |
| WRBW. R. Berkley Corporation | $25B | 13.8× | 10.3× | 44.8% | 10.7% | 20% |
| WTWWillis Towers Watson Public Limited Company | $27B | 18.0× | 12.2× | 53.8% | 15.5% | 20% |
The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 21.1% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $159 | $60.94 · +161% | 2026-06-10 |
| Levered DCF | $204 | $60.94 · +235% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.