BF.A Valuation

Brown-Forman Corp

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27.440

-0.1(-0.363%)1D

Overview
Forecast
Valuation
Earnings

BF.A Relative Valuation

BF.A's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BF.A is overvalued; if below, it's undervalued.

Historical Valuation

Brown-Forman Corp (BF.A) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.18 is considered Undervalued compared with the five-year average of 32.62. The fair price of Brown-Forman Corp (BF.A) is between 28.86 to 47.78 according to relative valuation methord. Compared to the current price of 27.44 USD , Brown-Forman Corp is Undervalued By 4.93%.

Relative Value

Fair Zone

28.86-47.78

Current Price：27.44

4.93%

Undervalued

20.18

Trailing

Forward

14.92

EV/EBITDA

Brown-Forman Corp. (BF.A) has a current EV/EBITDA of 14.92. The 5-year average EV/EBITDA is 23.58. The thresholds are as follows: Strongly Undervalued below 14.10, Undervalued between 14.10 and 18.84, Fairly Valued between 28.33 and 18.84, Overvalued between 28.33 and 33.07, and Strongly Overvalued above 33.07. The current Forward EV/EBITDA of 14.92 falls within the Undervalued range.

16.11

EV/EBIT

Brown-Forman Corp. (BF.A) has a current EV/EBIT of 16.11. The 5-year average EV/EBIT is 25.40. The thresholds are as follows: Strongly Undervalued below 15.00, Undervalued between 15.00 and 20.20, Fairly Valued between 30.60 and 20.20, Overvalued between 30.60 and 35.79, and Strongly Overvalued above 35.79. The current Forward EV/EBIT of 16.11 falls within the Undervalued range.

4.15

Brown-Forman Corp. (BF.A) has a current PS of 4.15. The 5-year average PS is 7.25. The thresholds are as follows: Strongly Undervalued below 3.60, Undervalued between 3.60 and 5.43, Fairly Valued between 9.08 and 5.43, Overvalued between 9.08 and 10.91, and Strongly Overvalued above 10.91. The current Forward PS of 4.15 falls within the Undervalued range.

19.86

P/OCF

Brown-Forman Corp. (BF.A) has a current P/OCF of 19.86. The 5-year average P/OCF is 34.89. The thresholds are as follows: Strongly Undervalued below 13.72, Undervalued between 13.72 and 24.30, Fairly Valued between 45.48 and 24.30, Overvalued between 45.48 and 56.06, and Strongly Overvalued above 56.06. The current Forward P/OCF of 19.86 falls within the Undervalued range.

22.65

P/FCF

Brown-Forman Corp. (BF.A) has a current P/FCF of 22.65. The 5-year average P/FCF is 36.97. The thresholds are as follows: Strongly Undervalued below 20.07, Undervalued between 20.07 and 28.52, Fairly Valued between 45.42 and 28.52, Overvalued between 45.42 and 53.86, and Strongly Overvalued above 53.86. The current Forward P/FCF of 22.65 falls within the Undervalued range.

Brown-Forman Corp (BF.A) has a current Price-to-Book (P/B) ratio of 4.46. Compared to its 3-year average P/B ratio of 7.70 , the current P/B ratio is approximately -42.06% higher. Relative to its 5-year average P/B ratio of 10.08, the current P/B ratio is about -55.72% higher. Brown-Forman Corp (BF.A) has a Forward Free Cash Flow (FCF) yield of approximately 3.14%. Compared to its 3-year average FCF yield of 1.84%, the current FCF yield is approximately 70.26% lower. Relative to its 5-year average FCF yield of 2.05% , the current FCF yield is about 52.82% lower.

4.46

P/B

Median3y

7.70

Median5y

10.08

3.14

FCF Yield

Median3y

1.84

Median5y

2.05

Competitors Valuation Multiple

The average P/S ratio for BF.A's competitors is 0.60, providing a benchmark for relative valuation. Brown-Forman Corp Corp (BF.A) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -3.18%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Molson Coors Beverage Co

Boston Beer Company Inc

Willamette Valley Vineyards Inc

Innovation Beverage Group Ltd

Loss

7.90M

Performance Decomposition

Market capitalization of BF.A decreased by 36.08% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from 26.66 to 26.09.

The secondary factor is the Revenue Growth, contributed -3.18%to the performance.

Overall, the performance of BF.A in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-3.18%

1.07B → 1.04B

Revenue Growth

-2.14%

26.66 → 26.09

Margin Expansion

-30.76%

24.94 → 17.27

P/E Change

-36.08%