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Brown & Brown (FRA:BTW) Cyclically Adjusted Book per Share : €12.44 (As of Mar. 2024)


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What is Brown & Brown Cyclically Adjusted Book per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Brown & Brown's adjusted book value per share for the three months ended in Mar. 2024 was €18.629. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €12.44 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Brown & Brown's average Cyclically Adjusted Book Growth Rate was 9.80% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 13.60% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 12.40% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 10.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Brown & Brown was 34.40% per year. The lowest was 9.60% per year. And the median was 16.80% per year.

As of today (2024-05-14), Brown & Brown's current stock price is €80.60. Brown & Brown's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was €12.44. Brown & Brown's Cyclically Adjusted PB Ratio of today is 6.48.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Brown & Brown was 6.73. The lowest was 2.58. And the median was 3.94.


Brown & Brown Cyclically Adjusted Book per Share Historical Data

The historical data trend for Brown & Brown's Cyclically Adjusted Book per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brown & Brown Cyclically Adjusted Book per Share Chart

Brown & Brown Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.33 7.11 9.16 11.19 11.92

Brown & Brown Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Book per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.39 11.46 12.48 11.92 12.44

Competitive Comparison of Brown & Brown's Cyclically Adjusted Book per Share

For the Insurance Brokers subindustry, Brown & Brown's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Brown & Brown's Cyclically Adjusted PB Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Brown & Brown's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Brown & Brown's Cyclically Adjusted PB Ratio falls into.



Brown & Brown Cyclically Adjusted Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Brown & Brown's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book= Book Value per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=18.629/129.4194*129.4194
=18.629

Current CPI (Mar. 2024) = 129.4194.

Brown & Brown Quarterly Data

Book Value per Share CPI Adj_Book
201406 5.299 100.560 6.820
201409 5.682 100.428 7.322
201412 5.974 99.070 7.804
201503 6.764 99.621 8.787
201506 6.685 100.684 8.593
201509 6.907 100.392 8.904
201512 7.100 99.792 9.208
201603 7.042 100.470 9.071
201606 7.164 101.688 9.118
201609 7.381 101.861 9.378
201612 7.985 101.863 10.145
201703 8.051 102.862 10.130
201706 7.814 103.349 9.785
201709 7.468 104.136 9.281
201712 7.901 104.011 9.831
201803 8.139 105.290 10.004
201806 8.775 106.317 10.682
201809 9.022 106.507 10.963
201812 9.434 105.998 11.519
201903 9.722 107.251 11.732
201906 10.001 108.070 11.977
201909 10.653 108.329 12.727
201912 10.705 108.420 12.778
202003 11.111 108.902 13.204
202006 11.218 108.767 13.348
202009 11.077 109.815 13.055
202012 10.904 109.897 12.841
202103 11.412 111.754 13.216
202106 11.630 114.631 13.130
202109 12.362 115.734 13.824
202112 13.148 117.630 14.466
202203 13.905 121.301 14.836
202206 14.359 125.017 14.865
202209 15.368 125.227 15.883
202212 15.355 125.222 15.870
202303 15.956 127.348 16.216
202306 16.509 128.729 16.598
202309 17.134 129.860 17.076
202312 17.975 129.419 17.975
202403 18.629 129.419 18.629

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.


Brown & Brown  (FRA:BTW) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Brown & Brown's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=80.60/12.44
=6.48

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Brown & Brown was 6.73. The lowest was 2.58. And the median was 3.94.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


Brown & Brown Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of Brown & Brown's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Brown & Brown (FRA:BTW) Business Description

Industry
Traded in Other Exchanges
Address
300 North Beach Stree, Daytona Beach, FL, USA, 32114
Brown & Brown Inc is an insurance agent and broker that offers insurance products and services, primarily in the areas of property, casualty, and employee benefits, by connecting customers with insurance companies. It earns its revenue via commissions from insurance companies and direct fees from customers, and it generally has no underwriting risk exposure. More than half of its revenue is from its retail segment, which provides a broad range of insurance products and services to entities and individuals. Roughly a fourth of revenue is from its national programs segment, which provides, among other things, professional liability coverage for professionals. The company operates primarily in the United States, with its highest exposure in Florida.

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