Brown & Brown Inc (BRO) is overvalued and Erie Indemnity Co (ERIE) is overvalued.
Both trade above our estimate of their intrinsic value. BRO is the closer of the two: -36%, against -64% for ERIE.
Values as of the 22 Sept 2026 close.
Book value at 1.25x, the multiple a 9.8% return on equity justifies, blended with earnings, values the shares at $45.92; the price of $62.44 is 36% above that value.
Leak Score 40/100 on 9 of 12 signals
Book value at 2.50x, the multiple a 24.8% return on equity justifies, blended with earnings, values the shares at $142.88; the price of $234.38 is 64% above that value.
Leak Score 44/100 on 2 of 12 signals
| Metric | BRO | ERIE |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $62.44 | $234.38 |
| Intrinsic value | $45.92 | $142.88 |
| Margin of safety | -36% | -64% |
| Leak Score | 40/100 (9/12) | 44/100 (2/12) |
| Market cap | $20.9B | $10.9B |
| Revenue growth, 5 years | 17.7% | 9.9% |
| Operating margin | 29.5% | 17.9% |
| Net margin | 17.5% | 14.0% |
| Return on equity | 9.8% | 24.8% |
| Debt to equity | 0.64 | 0.00 |
| P/E | 19.7x | 21.4x |
| Forward P/E | 12.9x | — |
| P/B | 1.6x | 4.4x |
| Dividend yield | 1.1% | 2.5% |