Brown-Forman Corporation

NYSE:BF.B Stock Report

Market Cap: US$27.6b

Brown-Forman Valuation

Is BF.B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • PM vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BF.B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BF.B ($57.49) is trading below our estimate of fair value ($68.75)

Significantly Below Fair Value: BF.B is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BF.B?

Other financial metrics that can be useful for relative valuation.

BF.B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.1x
Enterprise Value/EBITDA22.9x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

How does BF.B's PE Ratio compare to its peers?

The above table shows the PE ratio for BF.B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
STZ Constellation Brands
29x15.7%US$45.2b
MGPI MGP Ingredients
16.5x18.6%US$1.8b
NAPA Duckhorn Portfolio
16.8x21.6%US$1.1b
KOF Coca-Cola FEMSA. de
16.7x1.7%US$20.8b
BF.B Brown-Forman
35.1x10.1%US$27.6b

Price-To-Earnings vs Peers: BF.B is expensive based on its Price-To-Earnings Ratio (35.1x) compared to the peer average (19.7x).


Price to Earnings Ratio vs Industry

How does BF.B's PE Ratio compare vs other companies in the Global Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BF.B is expensive based on its Price-To-Earnings Ratio (35.1x) compared to the Global Beverage industry average (19.7x).


Price to Earnings Ratio vs Fair Ratio

What is BF.B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BF.B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.1x
Fair PE Ratio22.2x

PM vs Fair Ratio: BF.B is expensive based on its Price-To-Earnings Ratio (35.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BF.B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$57.49
US$59.92
+4.2%
11.7%US$80.00US$50.00n/a19
Feb ’25US$57.03
US$59.92
+5.1%
11.7%US$80.00US$50.00n/a19
Jan ’25US$57.10
US$60.70
+6.3%
11.8%US$80.00US$50.00n/a19
Dec ’24US$59.94
US$67.13
+12.0%
12.4%US$90.00US$53.00n/a19
Nov ’24US$56.17
US$68.66
+22.2%
11.4%US$90.00US$53.00n/a19
Oct ’24US$57.69
US$69.46
+20.4%
10.4%US$90.00US$56.00n/a19
Sep ’24US$66.74
US$69.68
+4.4%
10.2%US$90.00US$56.00n/a19
Aug ’24US$70.81
US$68.79
-2.9%
10.3%US$90.00US$56.00n/a19
Jul ’24US$66.78
US$68.08
+1.9%
10.2%US$90.00US$56.00n/a19
Jun ’24US$61.81
US$68.19
+10.3%
10.0%US$90.00US$60.00n/a18
May ’24US$65.29
US$68.14
+4.4%
10.0%US$90.00US$60.00n/a18
Apr ’24US$64.27
US$68.58
+6.7%
10.3%US$90.00US$60.00n/a18
Mar ’24US$64.25
US$70.53
+9.8%
10.0%US$90.00US$60.00n/a19
Feb ’24US$67.18
US$71.06
+5.8%
9.7%US$90.00US$60.00US$57.0318
Jan ’24US$65.68
US$71.06
+8.2%
9.7%US$90.00US$60.00US$57.1018
Dec ’23US$74.05
US$73.11
-1.3%
9.0%US$90.00US$62.00US$59.9418
Nov ’23US$67.44
US$73.33
+8.7%
8.4%US$90.00US$62.00US$56.1718
Oct ’23US$66.57
US$73.53
+10.5%
8.5%US$90.00US$62.00US$57.6917
Sep ’23US$72.51
US$71.53
-1.4%
10.3%US$90.00US$54.00US$66.7417
Aug ’23US$74.76
US$71.02
-5.0%
10.4%US$90.00US$54.00US$70.8117
Jul ’23US$71.57
US$70.91
-0.9%
10.1%US$90.00US$54.00US$66.7818
Jun ’23US$65.51
US$70.81
+8.1%
10.4%US$90.00US$54.00US$61.8118
May ’23US$67.44
US$70.75
+4.9%
10.5%US$90.00US$54.00US$65.2918
Apr ’23US$67.85
US$70.92
+4.5%
10.6%US$90.00US$54.00US$64.2718
Mar ’23US$64.44
US$72.71
+12.8%
8.3%US$90.00US$62.00US$64.2517
Feb ’23US$67.49
US$72.89
+8.0%
8.4%US$90.00US$62.00US$67.1817

Analyst Forecast: Target price is less than 20% higher than the current share price.


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