Discounted Cash Flow (DCF) Analysis Levered

Brown & Brown, Inc. (BRO)

$57.97

-1.08 (-1.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 100.18 | 57.97 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,857.272,009.862,384.742,606.113,047.523,451.993,910.144,429.105,016.935,682.78
Revenue (%)
Operating Cash Flow 441.98567.53678.18721.65942.47960.271,087.721,232.081,395.601,580.82
Operating Cash Flow (%)
Capital Expenditure -24.19-41.52-73.11-70.70-45.04-73.35-83.09-94.12-106.61-120.76
Capital Expenditure (%)
Free Cash Flow 417.78526.01605.07650.95897.42886.911,004.631,137.961,288.991,460.07

Weighted Average Cost Of Capital

Share price $ 57.97
Beta 0.744
Diluted Shares Outstanding 277.41
Cost of Debt
Tax Rate 23.04
After-tax Cost of Debt 2.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.023
Total Debt 2,246.35
Total Equity 16,081.69
Total Capital 18,328.04
Debt Weighting 12.26
Equity Weighting 87.74
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,857.272,009.862,384.742,606.113,047.523,451.993,910.144,429.105,016.935,682.78
Operating Cash Flow 441.98567.53678.18721.65942.47960.271,087.721,232.081,395.601,580.82
Capital Expenditure -24.19-41.52-73.11-70.70-45.04-73.35-83.09-94.12-106.61-120.76
Free Cash Flow 417.78526.01605.07650.95897.42886.911,004.631,137.961,288.991,460.07
WACC
PV LFCF 609.20648.18689.66733.79780.74
SUM PV LFCF 4,733.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.46
Free cash flow (t + 1) 1,489.27
Terminal Value 33,391.63
Present Value of Terminal Value 24,417.73

Intrinsic Value

Enterprise Value 29,151.50
Net Debt 1,359.35
Equity Value 27,792.15
Shares Outstanding 277.41
Equity Value Per Share 100.18