Is Brown & Brown, Inc. overvalued or undervalued?

As of 13 June 2025, the valuation grade for Brown & Brown, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a P/E ratio of 33, an EV to EBITDA of 18.80, and a PEG ratio of 5.39, all of which suggest that the company's stock price is high relative to its earnings and growth potential.
In comparison to its peers, Brown & Brown, Inc. has a higher P/E ratio than Marsh & McLennan Cos., Inc. at 27.15 and Aon Plc at 27.77, both of which are also classified as expensive. Additionally, the company's EV to EBITDA ratio is higher than Marsh & McLennan's 16.39, further supporting the conclusion of overvaluation. Despite a strong return performance against the S&P 500 over various periods, the current valuation metrics indicate that investors may be paying a premium for the stock.