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Is this Large Market Cap Stock target price reasonable for Brown & Brown Inc. (NYSE:BRO)?

The company in question is, Brown & Brown Inc. (NYSE:BRO) currently with a stock price of 37.53 (0.05% today). The market cap for Brown & Brown Inc. is 5302.04, and is in the sector Financial, and Insurance Brokers industry. The target price for Brown & Brown Inc. is 36.73. Currently Brown & Brown Inc. is trading with a P/E of 20.7, and a forward P/E of 19.52. Average volume for Brown & Brown Inc. is 647.14 and so far today it is 388118.

Performance in the last year for Brown & Brown Inc. has been 23.16%. For EPS growth, Brown & Brown Inc. has seen a growth of 20.10%, and is looking to grow in the next year to 6.13%. More long term stats show that EPS growth has been 8.60% over the last five years and could be 9.00% for the next five years. Brown & Brown Inc. has seen sales growth quarter over quarter at 6.50%, with EPS growth quarter over quarter at 10.40%. The 20-day simple moving average is 0.80%, with the 200-day simple moving average coming to 7.61%.

Since the IPO date for Brown & Brown Inc. on the 03/03/1992, Brown & Brown Inc. has seen performance year to date to be 18.14%. With Brown & Brown Inc. trading at 37.53, the dividend yield is 1.31%, and the EPS is 1.81.

So could Brown & Brown Inc., be undervalued? Well as said before P/E is 20.7. The PEG is 2.3, P/S is 3.11 and the P/B is at 2.27. The P/cash is 11.28, with P/free cash flow at 18.31.

Brown & Brown Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 1.1. This is with long term debt/equity at 0.46, and total debt/equity at 0.5.

In terms of margins, Brown & Brown Inc. has a gross margin of *TBA, an operating margin of 26.70% and a profit margin of 14.70%.Payout ratio for Brown & Brown Inc. is 25.60%. Return on assets come to 5.00% with return on investment coming to 8.60%.

Insider ownership for Brown & Brown Inc., is at 1.20% and institutional ownership comes to 74.70%. Outstanding shares are at 141.35. While shares float is 115.04. The float short is currently 2.79%, and short ratio is 4.96.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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