Discounted Cash Flow (DCF) Analysis Levered

Brown & Brown, Inc. (BRO)

$83.74

-0.47 (-0.56%)
All numbers are in Millions, Currency in USD
Stock DCF: 125.86 | 83.74 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,384.702,606.103,047.503,573.404,257.104,923.465,694.116,585.407,616.208,808.35
Revenue (%)
Operating Cash Flow 678.20721.60948881.401,009.501,335.391,544.411,786.162,065.742,389.09
Operating Cash Flow (%)
Capital Expenditure -73.10-70.70-45-52.60-68.90-101.87-117.81-136.26-157.58-182.25
Capital Expenditure (%)
Free Cash Flow 605.10650.90903828.80940.601,233.521,426.601,649.901,908.162,206.84

Weighted Average Cost Of Capital

Share price $ 83.74
Beta 0.782
Diluted Shares Outstanding 280.80
Cost of Debt
Tax Rate 24.05
After-tax Cost of Debt 3.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.850
Total Debt 3,974.20
Total Equity 23,514.19
Total Capital 27,488.39
Debt Weighting 14.46
Equity Weighting 85.54
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,384.702,606.103,047.503,573.404,257.104,923.465,694.116,585.407,616.208,808.35
Operating Cash Flow 678.20721.60948881.401,009.501,335.391,544.411,786.162,065.742,389.09
Capital Expenditure -73.10-70.70-45-52.60-68.90-101.87-117.81-136.26-157.58-182.25
Free Cash Flow 605.10650.90903828.80940.601,233.521,426.601,649.901,908.162,206.84
WACC
PV LFCF 1,072.591,156.731,247.471,345.331,450.87
SUM PV LFCF 6,727.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.24
Free cash flow (t + 1) 2,250.97
Terminal Value 42,957.50
Present Value of Terminal Value 30,286.91

Intrinsic Value

Enterprise Value 37,014.07
Net Debt 1,671.30
Equity Value 35,342.77
Shares Outstanding 280.80
Equity Value Per Share 125.86