Brown & Brown, Inc. (BRO) - Moat Analysis

Valuation

2.30

Assesses whether the stock is priced attractively relative to its earnings, assets, enterprise value, and cash flows. A high score signals the market is undervaluing the company compared to fundamental metrics.

Sub-dimension

Summary

Score

Earnings Valuation

1.4/5

1.41

How cheap or expensive the stock is relative to its earnings

1.41

Summary

•P/E Ratio stands at 26.74 - well below the sector average (16.00)
•PEG Ratio — - no data available

1.41

Asset Valuation

1.8/5

1.80

Whether the price reflects the company's book value and sales fairly

1.80

Summary

•P/B Ratio stands at 2.15 - below the sector average (1.20)
•P/S Ratio stands at 5.17 - below the sector average (3.50)

1.80

Enterprise Valuation

2.6/5

2.62

How the market values the entire business including debt

2.62

Summary

•EV/EBITDA stands at 12.98 - in line with the sector average (12.00)
•EV/Sales stands at 4.58 - below the sector average (3.00)
•EV/Operating Cash Flow stands at 17.86 - in line with the sector average (15.00)

2.62

Cashflow Valuation

3.5/5

3.46

What you pay for each dollar of free cash the company generates

3.46

Summary

•EV/FCF stands at 18.12 - in line with the sector average (22.00)
•FCF Yield stands at 4.9% - in line with the sector average (4.0%)

3.46

Financial Health

4.42

Evaluates the company's balance sheet strength through liquidity, leverage, and debt coverage ratios. A high score indicates a solid financial position with low risk of distress.

Sub-dimension

Summary

Score

Liquidity

3.5/5

3.46

Ability to cover short-term obligations with available assets

3.46

Summary

•Current Ratio stands at 1.18 - below the sector average (1.50)
•Quick Ratio stands at 1.18 - in line with the sector average (1.00)
•Cash Ratio stands at 0.50 - well above the sector average (0.15)

3.46

Leverage

4.9/5

4.94

How much the company relies on debt to finance operations

4.94

Summary

•Debt/Equity stands at 0.03 - well above the sector average (1.50)
•Debt/Assets stands at 0.01 - well above the sector average (0.75)
•Financial Leverage stands at 2.37 - well above the sector average (6.00)

4.94

Coverage

4.7/5

4.71

Capacity to comfortably service interest and debt payments

4.71

Summary

•Interest Coverage stands at 5.68 - above the sector average (3.00)
•Debt Service Coverage stands at 4.74 - well above the sector average (1.50)
•Net Debt/EBITDA stands at -1.67 - well above the sector average (2.50)

4.71

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