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Brown & Brown (FRA:BTW) Cyclically Adjusted Price-to-FCF : (As of May. 14, 2024)


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What is Brown & Brown Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Brown & Brown Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Brown & Brown's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Brown & Brown Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.51 30.26 37.79 26.02 29.31

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 Price-to-FCF 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 26.30 30.16 29.45 29.31 -

Competitive Comparison of Brown & Brown's Cyclically Adjusted Price-to-FCF

For the Insurance Brokers subindustry, Brown & Brown's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Brown & Brown's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Brown & Brown's Cyclically Adjusted Price-to-FCF falls into.



Brown & Brown Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Brown & Brown's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0/129.4194*129.4194
=0.000

Current CPI (Mar. 2024) = 129.4194.

Brown & Brown Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.264 100.560 0.340
201409 0.272 100.428 0.351
201412 0.271 99.070 0.354
201503 0.153 99.621 0.199
201506 0.547 100.684 0.703
201509 0.188 100.392 0.242
201512 0.282 99.792 0.366
201603 0.095 100.470 0.122
201606 0.649 101.688 0.826
201609 0.246 101.861 0.313
201612 0.299 101.863 0.380
201703 0.293 102.862 0.369
201706 0.557 103.349 0.698
201709 0.119 104.136 0.148
201712 0.358 104.011 0.445
201803 0.205 105.290 0.252
201806 0.584 106.317 0.711
201809 0.214 106.507 0.260
201812 0.637 105.998 0.778
201903 -0.057 107.251 -0.069
201906 0.930 108.070 1.114
201909 0.427 108.329 0.510
201912 0.672 108.420 0.802
202003 0.057 108.902 0.068
202006 1.176 108.767 1.399
202009 0.316 109.815 0.372
202012 0.470 109.897 0.553
202103 0.384 111.754 0.445
202106 0.684 114.631 0.772
202109 0.730 115.734 0.816
202112 0.543 117.630 0.597
202203 0.305 121.301 0.325
202206 0.797 125.017 0.825
202209 0.868 125.227 0.897
202212 0.885 125.222 0.915
202303 0.161 127.348 0.164
202306 1.038 128.729 1.044
202309 1.007 129.860 1.004
202312 0.894 129.419 0.894
202403 0.000 129.419 0.000

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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.


Brown & Brown  (FRA:BTW) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Brown & Brown Cyclically Adjusted Price-to-FCF Related Terms

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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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