Question 1

What is Brown & Brown, Inc.'s WACC?

Accepted Answer

Brown & Brown, Inc. (BRO) has a Weighted Average Cost of Capital (WACC) of 6.49%. This is calculated using a Cost of Equity of 7.62% (via CAPM with a beta of 0.67) and a pre-tax Cost of Debt of 3.90%, with an equity weight of 75.13% in the capital structure.

Question 2

Is Brown & Brown, Inc.'s WACC high or low?

Accepted Answer

Brown & Brown, Inc.'s WACC of 6.49% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Brown & Brown, Inc.'s WACC calculated?

Accepted Answer

Brown & Brown, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.62% is derived from the CAPM model using a beta of 0.67. The pre-tax Cost of Debt (Rd) is 3.90%. The capital structure is 75.13% equity and 24.87% debt.

Brown & Brown, Inc. (BRO) — WACC 分析

WACC 构成

解读

Brown & Brown, Inc.（BRO）WACC：6.49%

WACC计算器

Brown & Brown, Inc.（BRO） WACC 解读

BRO 公司分析

BRO DCF 估值

继续做同行对比