We’ve recently updated our valuation analysis.

Brown-Forman Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue8.1x
Enterprise Value/EBITDA24.7x
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.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.5x
NAPA Duckhorn Portfolio
32.4x13.0%US$1.9b
MGPI MGP Ingredients
17.7x9.0%US$2.1b
KDP Keurig Dr Pepper
27.1x11.8%US$49.5b
MNST Monster Beverage
44.8x15.7%US$54.3b
BF.B Brown-Forman
36.3x10.5%US$32.1b

Price-To-Earnings vs Peers: BF.B is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the peer average (30.5x).


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/a11.1%
n/an/an/a

Price-To-Earnings vs Industry: BF.B is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the Global Beverage industry average (19.8x)


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 Ratio36.3x
Fair PE Ratio23.3x

Price-To-Earnings vs Fair Ratio: BF.B is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).


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 ($67.16) is trading above our estimate of fair value ($51.89)

Significantly Below Fair Value: BF.B is trading above our estimate of fair value.


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$67.16
US$71.06
+5.8%
9.7%US$90.00US$60.00n/a18
Jan ’24US$65.68
US$71.06
+8.2%
9.7%US$90.00US$60.00n/a18
Dec ’23US$74.05
US$73.11
-1.3%
9.0%US$90.00US$62.00n/a18
Nov ’23US$67.44
US$73.33
+8.7%
8.4%US$90.00US$62.00n/a18
Oct ’23US$66.57
US$73.53
+10.5%
8.5%US$90.00US$62.00n/a17
Sep ’23US$72.51
US$71.53
-1.4%
10.3%US$90.00US$54.00n/a17
Aug ’23US$74.76
US$71.02
-5.0%
10.4%US$90.00US$54.00n/a17
Jul ’23US$71.57
US$70.91
-0.9%
10.1%US$90.00US$54.00n/a18
Jun ’23US$65.51
US$70.81
+8.1%
10.4%US$90.00US$54.00n/a18
May ’23US$67.44
US$70.75
+4.9%
10.5%US$90.00US$54.00n/a18
Apr ’23US$67.85
US$70.92
+4.5%
10.6%US$90.00US$54.00n/a18
Mar ’23US$64.44
US$72.71
+12.8%
8.3%US$90.00US$62.00n/a17
Feb ’23US$67.49
US$72.89
+8.0%
8.4%US$90.00US$62.00n/a17
Jan ’23US$72.86
US$72.70
-0.2%
8.5%US$90.00US$62.00US$65.6816
Dec ’22US$70.64
US$72.37
+2.4%
9.4%US$90.00US$62.00US$74.0516
Nov ’22US$70.94
US$72.24
+1.8%
9.5%US$90.00US$62.00US$67.4416
Oct ’22US$67.18
US$72.24
+7.5%
9.5%US$90.00US$62.00US$66.5716
Sep ’22US$72.62
US$71.37
-1.7%
9.4%US$90.00US$62.00US$72.5116
Aug ’22US$70.92
US$71.68
+1.1%
12.3%US$100.00US$62.00US$74.7616
Jul ’22US$74.54
US$71.68
-3.8%
12.3%US$100.00US$62.00US$71.5716
Jun ’22US$80.17
US$72.21
-9.9%
12.1%US$100.00US$62.00US$65.5116
May ’22US$76.28
US$72.39
-5.1%
12.3%US$100.00US$62.00US$67.4416
Apr ’22US$69.65
US$71.78
+3.1%
12.5%US$100.00US$62.00US$67.8517
Mar ’22US$72.86
US$72.49
-0.5%
12.7%US$100.00US$62.00US$64.4417
Feb ’22US$72.16
US$72.66
+0.7%
12.9%US$100.00US$62.00US$67.4917
Jan ’22US$79.43
US$72.94
-8.2%
12.7%US$100.00US$62.00US$72.8617

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


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