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Brown & Brown is Among the Companies in the Insurance Brokers Industry With the Lowest EV/EBITDA Ratio (BRO, MMC, WSH, AJG, AON)

By Nick Russo

Below are the three companies in the Insurance Brokers industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Brown & Brown ranks lowest with a an EV/EBITDA ratio of 11.91. Following is Marsh & McLennan with a an EV/EBITDA ratio of 13.74. Willis Group ranks third lowest with a an EV/EBITDA ratio of 14.63.

Arthur J Gallagher follows with a an EV/EBITDA ratio of 14.94, and AON rounds out the bottom five with a an EV/EBITDA ratio of 15.32.

SmarTrend recommended that subscribers consider buying shares of Brown & Brown on February 5th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $31.54. Since that recommendation, shares of Brown & Brown have risen 17.2%. We continue to monitor Brown & Brown for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest ev/ebitda ratio brown & brown marsh & mclennan willis group arthur j gallagher