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Brown & Brown (FRA:BTW) Cyclically Adjusted PS Ratio : 8.35 (As of May. 14, 2024)


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What is Brown & Brown Cyclically Adjusted PS Ratio?

As of today (2024-05-14), Brown & Brown's current share price is €80.60. Brown & Brown's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €9.65. Brown & Brown's Cyclically Adjusted PS Ratio for today is 8.35.

The historical rank and industry rank for Brown & Brown's Cyclically Adjusted PS Ratio or its related term are showing as below:

FRA:BTW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 3.39   Med: 5.39   Max: 9.03
Current: 8.31

During the past years, Brown & Brown's highest Cyclically Adjusted PS Ratio was 9.03. The lowest was 3.39. And the median was 5.39.

FRA:BTW's Cyclically Adjusted PS Ratio is ranked worse than
98.03% of 406 companies
in the Insurance industry
Industry Median: 1.02 vs FRA:BTW: 8.31

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Brown & Brown's adjusted revenue per share data for the three months ended in Mar. 2024 was €4.021. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €9.65 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Brown & Brown Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Brown & Brown's Cyclically Adjusted PS Ratio 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 PS Ratio Chart

Brown & Brown Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.53 7.12 9.00 6.28 6.94

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 PS Ratio 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 6.07 7.03 6.92 6.94 8.32

Competitive Comparison of Brown & Brown's Cyclically Adjusted PS Ratio

For the Insurance Brokers subindustry, Brown & Brown's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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 PS Ratio Distribution in the Insurance Industry

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

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



Brown & Brown Cyclically Adjusted PS Ratio Calculation

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

Brown & Brown's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=80.60/9.65
=8.35

* 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.

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=4.021/129.4194*129.4194
=4.021

Current CPI (Mar. 2024) = 129.4194.

Brown & Brown Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 1.015 100.560 1.306
201409 1.142 100.428 1.472
201412 1.112 99.070 1.453
201503 1.318 99.621 1.712
201506 1.329 100.684 1.708
201509 1.374 100.392 1.771
201512 1.333 99.792 1.729
201603 1.385 100.470 1.784
201606 1.441 101.688 1.834
201609 1.488 101.861 1.891
201612 1.483 101.863 1.884
201703 1.495 102.862 1.881
201706 1.487 103.349 1.862
201709 1.433 104.136 1.781
201712 1.448 104.011 1.802
201803 1.472 105.290 1.809
201806 1.465 106.317 1.783
201809 1.649 106.507 2.004
201812 1.621 105.998 1.979
201903 1.987 107.251 2.398
201906 1.848 108.070 2.213
201909 2.038 108.329 2.435
201912 1.889 108.420 2.255
202003 2.293 108.902 2.725
202006 1.936 108.767 2.304
202009 2.058 109.815 2.425
202012 1.898 109.897 2.235
202103 2.469 111.754 2.859
202106 2.176 114.631 2.457
202109 2.359 115.734 2.638
202112 2.344 117.630 2.579
202203 2.947 121.301 3.144
202206 2.853 125.017 2.953
202209 3.357 125.227 3.469
202212 3.023 125.222 3.124
202303 3.709 127.348 3.769
202306 3.444 128.729 3.462
202309 3.550 129.860 3.538
202312 3.162 129.419 3.162
202403 4.021 129.419 4.021

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Brown & Brown Cyclically Adjusted PS Ratio Related Terms

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


Brown & Brown (FRA:BTW) Business Description

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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