Brown & Brown (BRO)
Forward P/E is 14.15x against a peer median of 16.61x, a ratio of 0.85x — below the 0.90–1.15 fairly priced band — with trailing P/E 20.97x and PEG 2.72. Latest-quarter revenue grew 7.4% year over year (PRIMARY, EDGAR), close to the cluster median. Delivered demand check: the Insurance brokers group's median growth was 7.8% year over year — demand rising, and Brown & Brown grew close to that pace. Value-trap check: revenue is not shrinking and the cluster median is positive, so the UNDERVALUED label stands.
What would change this label: Move to FAIRLY PRICED if the forward P/E rises to about 14.95x or above (0.90x the peer median) at unchanged estimates, or if revenue growth falls below 0% year over year while the multiple stays below the peer median. The label would strengthen, staying UNDERVALUED, if revenue growth rises above the 7.8% cluster median while the forward P/E stays below about 14.95x.
Brown & Brown, an insurance broker, trades at about 14 times next year's expected earnings against about 17 times for similar brokers, while its sales grew 7.4%, close to the peer pace. Paying less than peers for similar growth looks like a discount. The shares look undervalued.
Both lines start at 100 on 2020-09-01. Over the full window Brown & Brown returned +44.68% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Brown & Brown: -56.3% (2025-04-03 to 2026-05-13). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 14.15x against a peer median of 16.61x, a ratio of 0.85x — below the 0.90–1.15 fairly priced band — with trailing P/E 20.97x and PEG 2.72. Latest-quarter revenue grew 7.4% year over year (PRIMARY, EDGAR), close to the cluster median. Delivered demand check: the Insurance brokers group's median growth was 7.8% year over year — demand rising, and Brown & Brown grew close to that pace. Value-trap check: revenue is not shrinking and the cluster median is positive, so the UNDERVALUED label stands. The company’s forward P/E is 14.2× against a peer median of 16.6×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Insurance brokers group's median latest-quarter revenue growth was 7.8% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +7.4% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Brown & Brown (BRO) | $66.61 | 14.2× | 21.0× |
| WTW | $320.97 | 15.3× | 19.7× |
| ERIE | $246.23 | — | 22.3× |
| AON | $313.48 | 16.2× | 17.1× |
| AJG | $261.48 | 18.7× | 43.4× |
| MRSH | $191.09 | 17.0× | 22.9× |
| Peer median | 16.6× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Sep 2026 2026-09-30 | $1.7B | — | $240M | 0.67 | $493M |
| Q/E Jun 2026 2026-06-30 | $1.7B | — | $288M | 0.84 | $329M |
| Q/E Mar 2026 2026-03-31 | $1.9B | — | $426M | 1.06 | $241M |
| Q/E Dec 2025 2025-12-31 | $1.6B | — | $264M | — | $424M |
| Q/E Sep 2025 2025-09-30 | $1.6B | — | $227M | 0.68 | $452M |
| Q/E Jun 2025 2025-06-30 | $1.3B | — | $231M | 0.78 | $310M |
| Q/E Mar 2025 2025-03-31 | $1.4B | — | $331M | 1.15 | $196M |
| Q/E Dec 2024 2024-12-31 | $1.2B | — | $210M | — | $341M |
| Q/E Sep 2024 2024-09-30 | $1.2B | — | $234M | 0.81 | $417M |
| Q/E Jun 2024 2024-06-30 | $1.2B | — | $257M | 0.90 | $334M |
| Q/E Mar 2024 2024-03-31 | $1.3B | — | $293M | 1.02 | $0 |
| Q/E Dec 2023 2023-12-31 | $1.0B | — | $269M | — | $275M |
The last twelve reported quarters. Full 25-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | BROWN & BROWN, INC. |
| Chief executive | J. Powell Brown (source: https://www.businessinsurance.com/brown-brown-q3-revenue-rises-as-property-cat-rates-fall/) |
| Sector | Financials — Insurance Brokers — brokers insurance and risk management services for businesses and individuals |
| Share price (Oct 28, 2026) | $66.61 |
| Market value (market cap) | $22.4B — share price times shares outstanding of 331,691,829 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $6.9B |
| Net income, last twelve months | $1.2B |
| Free cash flow, last twelve months | $1.5B |
| Latest reported quarter | Q/E Sep 2026 (of 25 quarters in the data pack) |
| Six-year price return vs S&P 500 | +44.68% vs +118.28% |
| Worst peak-to-trough fall | -56.3% (2025-04-03 to 2026-05-13) |
What we could not verify
- Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000079282.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000079282.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/BRO/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.