Discounted Cash Flow (DCF) Analysis Levered
Brown & Brown, Inc. (BRO)
$74.14
-0.60 (-0.80%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,009.90 | 2,384.70 | 2,606.10 | 3,047.50 | 3,573.40 | 4,128.40 | 4,769.60 | 5,510.39 | 6,366.24 | 7,355 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 567.50 | 678.20 | 721.60 | 948 | 881.40 | 1,157.08 | 1,336.79 | 1,544.42 | 1,784.29 | 2,061.41 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -41.50 | -73.10 | -70.70 | -45 | -52.60 | -89.10 | -102.94 | -118.93 | -137.40 | -158.74 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 526 | 605.10 | 650.90 | 903 | 828.80 | 1,067.98 | 1,233.85 | 1,425.48 | 1,646.88 | 1,902.67 |
Weighted Average Cost Of Capital
| Share price | $ 74.14 |
|---|---|
| Beta | 0.760 |
| Diluted Shares Outstanding | 278.66 |
| Cost of Debt | |
| Tax Rate | 23.32 |
| After-tax Cost of Debt | 3.19% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.743 |
| Total Debt | 4,138 |
| Total Equity | 20,659.70 |
| Total Capital | 24,797.70 |
| Debt Weighting | 16.69 |
| Equity Weighting | 83.31 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,009.90 | 2,384.70 | 2,606.10 | 3,047.50 | 3,573.40 | 4,128.40 | 4,769.60 | 5,510.39 | 6,366.24 | 7,355 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 567.50 | 678.20 | 721.60 | 948 | 881.40 | 1,157.08 | 1,336.79 | 1,544.42 | 1,784.29 | 2,061.41 |
| Capital Expenditure | -41.50 | -73.10 | -70.70 | -45 | -52.60 | -89.10 | -102.94 | -118.93 | -137.40 | -158.74 |
| Free Cash Flow | 526 | 605.10 | 650.90 | 903 | 828.80 | 1,067.98 | 1,233.85 | 1,425.48 | 1,646.88 | 1,902.67 |
| WACC | ||||||||||
| PV LFCF | 933.16 | 1,007.75 | 1,088.31 | 1,175.30 | 1,269.25 | |||||
| SUM PV LFCF | 5,855.85 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.98 |
| Free cash flow (t + 1) | 1,940.72 |
| Terminal Value | 38,970.32 |
| Present Value of Terminal Value | 27,811.28 |
Intrinsic Value
| Enterprise Value | 33,667.13 |
|---|---|
| Net Debt | 3,488 |
| Equity Value | 30,179.13 |
| Shares Outstanding | 278.66 |
| Equity Value Per Share | 108.30 |