Explain this page
Arphra AIPlain-English read on Brown & Brown, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
B+Solid
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin87.7%
Operating margin28.5%
Net margin17.7%
ROE8.4%
ROA3.5%
ROIC6.8%
Liquidity & leverage
Current ratio1.04×
Quick ratio1.04×
Debt / equity0.63×
Net debt / EBITDA3.36×
Interest coverage6×
Efficiency & per-share
Asset turnover0.20×
Inventory days0
Days sales out.221
FCF / share$4.42
Book value / share$40.17
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Headline | ||||||||
| Market cap | — | — | — | $28.77B | $24.71B | — | — | — |
| Enterprise value | — | — | — | $32.15B | $31.55B | — | — | — |
| Multiples | ||||||||
| P / E | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 6.83 | 5.30 | — | — | — |
| EV / FCF | — | — | — | 29.45 | 22.83 | — | — | — |
| Yields | ||||||||
| Earnings yield | — | — | — | +3.45% | +4.27% | — | — | — |
| Free cash flow yield | — | — | — | +3.80% | +5.59% | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||
| Gross margin | +46.29% | +49.00% | +47.92% | +48.86% | +87.68% | +62.69% | +60.13% | +59.71% |
| Operating margin | +28.05% | +27.03% | +27.53% | +29.05% | +28.46% | +28.13% | +28.30% | +28.88% |
| EBITDA margin | +32.18% | +33.96% | +36.89% | +36.68% | +34.17% | +36.53% | +35.20% | +36.17% |
| EBIT margin | +27.16% | +28.74% | +31.98% | +31.97% | +28.01% | +30.24% | +30.55% | +31.55% |
| Pre-tax margin | +25.03% | +24.59% | +27.29% | +27.69% | +23.02% | +25.51% | +26.11% | +25.28% |
| Net margin | +19.26% | +18.85% | +20.73% | +21.11% | +17.70% | +19.28% | +19.70% | +20.05% |
| Cost structure | ||||||||
| Cost of revenue / sales | +53.71% | +51.00% | +52.08% | +51.14% | +12.32% | +38.82% | +38.17% | +38.22% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Effective tax rate | +23.03% | +23.32% | +24.05% | +23.10% | +22.17% | +23.40% | +23.65% | +24.34% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Returns | ||||||||
| Return on equity (ROE) | +13.99% | +14.58% | +15.60% | +15.39% | +8.38% | +12.30% | +12.25% | +12.47% |
| Return on assets (ROA) | +5.99% | +4.81% | +5.85% | +5.64% | +3.51% | +4.69% | +4.91% | +4.98% |
| Return on capital (ROC) | +13.27% | +10.96% | +12.04% | +13.00% | +8.27% | +10.79% | +10.67% | +10.94% |
| Return on invested capital (ROIC) | +9.11% | +7.64% | +9.07% | +9.44% | +5.14% | +7.39% | +7.43% | +7.59% |
| Asset turnover | +31.11% | +25.50% | +28.21% | +26.71% | +19.86% | +24.31% | +24.95% | +24.82% |
| DuPont · ROE decomposition | ||||||||
| Net margin | +19.26% | +18.85% | +20.73% | +21.11% | +17.70% | +19.28% | +19.70% | +20.05% |
| Asset turnover (× revenue / assets) | +31.11% | +25.50% | +28.21% | +26.71% | +19.86% | +24.31% | +24.95% | +24.82% |
| Equity multiplier (× assets / equity) | +233.40% | +303.34% | +266.77% | +272.89% | +238.53% | +262.36% | +249.23% | +250.74% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Turnover | ||||||||
| Asset turnover | 0.31 | 0.25 | 0.28 | 0.27 | 0.20 | 0.24 | 0.25 | 0.25 |
| Fixed-asset turnover | 7.45 | 7.83 | 8.95 | 9.07 | 9.36 | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — |
| Receivables turnover | 2.38 | 1.51 | 2.06 | 1.33 | 1.65 | — | — | — |
| Payables turnover | 6.74 | 6.34 | 4.76 | 6.45 | 0.74 | — | — | — |
| Days outstanding | ||||||||
| Days sales outstanding (DSO) | 153.23 | 241.28 | 177.33 | 274.47 | 220.62 | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 54.12 | 57.55 | 76.60 | 56.59 | 492.30 | — | — | — |
| Cash conversion cycle | 99.12 | 183.73 | 100.72 | 217.88 | -271.68 | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.38 | 1.31 | 1.16 | 1.18 | 1.38 | 1.27 | 1.23 | 1.21 |
| FCF / Net income | 1.30 | 1.23 | 1.08 | 1.10 | 1.31 | 1.18 | 1.14 | 1.15 |
| FCF margin | +25.06% | +23.27% | +22.41% | +23.21% | +23.20% | +22.67% | +22.55% | +23.11% |
| OCF margin | +26.54% | +24.73% | +24.05% | +24.95% | +24.35% | +24.44% | +24.24% | +24.30% |
| CapEx / Revenue | +1.48% | +1.46% | +1.64% | +1.74% | +1.14% | +1.55% | +1.49% | +1.55% |
| CapEx / D&A | 0.29 | 0.28 | 0.33 | 0.37 | 0.19 | — | — | — |
| Stock-based comp / Revenue | +2.00% | +1.85% | +2.12% | +2.15% | +1.56% | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 2.07 | 2.37 | 3.05 | 3.46 | 3.16 | 4.51 | 4.89 | 5.26 |
| EPS · basic | 2.08 | 2.38 | 3.07 | 3.48 | 3.40 | 4.58 | 5.02 | 5.47 |
| Book value / share | 15.13 | 16.53 | 19.87 | 22.73 | 40.17 | 35.57 | 38.09 | 40.34 |
| Tangible BV / share | -5.84 | -13.15 | -12.05 | -11.73 | -23.71 | 35.57 | 38.09 | 40.34 |
| Sales / share | 10.99 | 12.79 | 14.95 | 16.57 | 19.03 | 22.69 | 23.69 | 25.11 |
| Operating CF / share | 2.92 | 3.16 | 3.60 | 4.13 | 4.63 | 5.55 | 5.74 | 6.10 |
| Free cash flow / share | 2.75 | 2.98 | 3.35 | 3.85 | 4.42 | 5.14 | 5.34 | 5.80 |
| Dividends / share | 0.39 | 0.43 | 0.48 | 0.54 | 0.62 | 0.72 | 0.76 | 0.84 |
| Payout ratio | +18.26% | +17.86% | +15.51% | +15.51% | +18.41% | +16.54% | +16.38% | +16.68% |
| Retention ratio | +81.74% | +82.14% | +84.49% | +84.49% | +81.59% | +83.46% | +83.62% | +83.32% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 7y CAGR |
|---|---|---|---|---|---|---|---|---|---|
| Top-line | |||||||||
| Revenue · YoY | — | +16.92% | +17.85% | +12.05% | +26.59% | +18.39% | +5.18% | +6.58% | +14.59% |
| Gross profit · YoY | — | +23.78% | +15.23% | +14.26% | +127.14% | -15.35% | +0.87% | +5.84% | +18.83% |
| Profit | |||||||||
| Operating income · YoY | — | +12.67% | +20.04% | +18.25% | +23.99% | +17.04% | +5.78% | +8.79% | +15.07% |
| EBITDA · YoY | — | +23.38% | +28.02% | +11.43% | +17.90% | +26.56% | +1.35% | +9.53% | +16.51% |
| Net income · YoY | — | +14.43% | +29.58% | +14.07% | +6.14% | +28.97% | +7.46% | +8.46% | +15.24% |
| Operating | |||||||||
| EBIT · YoY | — | +23.70% | +31.15% | +11.99% | +10.90% | +27.84% | +6.27% | +10.06% | +17.07% |
| R&D · YoY | — | — | — | — | — | — | — | — | — |
| Per-share | |||||||||
| EPS · diluted · YoY | — | +14.49% | +28.69% | +13.44% | -8.67% | +42.82% | +8.34% | +7.62% | +14.26% |
| EPS · basic · YoY | — | +14.42% | +28.99% | +13.36% | -2.30% | +34.70% | +9.58% | +9.08% | +14.83% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Leverage | ||||||||
| Total debt | $2.25B | $4.18B | $4.02B | $4.06B | $7.92B | $7.34B | $7.74B | $8.16B |
| Net debt | $1.55B | $3.53B | $3.32B | $3.39B | $6.84B | $6.18B | $6.5B | $6.84B |
| Net debt / EBITDA | 1.58 | 2.92 | 2.14 | 1.96 | 3.36 | 2.40 | 2.49 | 2.39 |
| Debt / equity | 0.54 | 0.91 | 0.72 | 0.63 | 0.63 | 0.66 | 0.65 | 0.64 |
| Debt / assets | +22.93% | +29.94% | +27.01% | +23.05% | +26.40% | +25.29% | +26.03% | +25.63% |
| Equity / assets | +42.85% | +32.97% | +37.49% | +36.65% | +41.92% | +38.12% | +40.12% | +39.88% |
| Coverage | ||||||||
| EBITDA / interest expense | 15.09 | 8.18 | 7.86 | 8.59 | 6.85 | 7.93 | 7.46 | 7.97 |
| Operating income / interest | 13.15 | 6.51 | 5.87 | 6.80 | 5.71 | 6.11 | 6.00 | 6.37 |
| Interest expense | $65M | $148M | $197M | $201M | $297M | $324.92M | $350.04M | $358.66M |
| Liquidity | ||||||||
| Current ratio | 1.25 | 1.09 | 1.04 | 1.10 | 1.04 | — | — | — |
| Quick ratio | 0.74 | 0.66 | 0.56 | 0.67 | 0.56 | — | — | — |
| Cash ratio | 0.26 | 0.14 | 0.14 | 0.11 | 0.13 | — | — | — |
| Working capital | $662.9M | $399.4M | $174M | $610M | $320M | — | — | — |
| Working capital / revenue | +21.75% | +11.21% | +4.14% | +12.96% | +5.37% | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 5.30x | 6.83x |
| Earnings yield | 4.3% | 3.5% |
| FCF yield | 5.6% | 3.8% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 8.4% | 15.4% |
| ROA | 3.5% | 5.6% |
| ROIC | 5.9% | 9.1% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 3.36 | 1.96 |
| Interest coverage | — | — |
| Current ratio | 1.04x | 1.10x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).