Brown–Forman
About the company
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells a variety of alcohol beverages. The company provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink cocktails, ready-to-pour products, vodkas, tequilas, gin, brandy, rum, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Woodford Reserve, Old Forester, Gentleman Jack, Herradura, el Jimador, Fords Gin, The Glendronach, Chambord, Coopers' Craft, Diplomático, Benriach, Glenglassaugh, and Slane brands. It is also involved in the sale of used barrels, and bulk whiskey and wine; and provision of contract bottling services. The company serves retail customers and consumers through distributors and state governments; and retailers, wholesalers, and provincial governments directly. It operates in the United States, Germany, Australia, the United Kingdom, Canada, Spain, France, Mexico, Poland, Brazil, Türkiye, and internationally. Brown-Forman Corporation was founded in 1870 and is headquartered in Louisville, Kentucky.
Price within modeled range
Other models: USD 23.64–25.67 (median 23.74). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
The range depends on model assumptions and data; it is not a prediction or investment advice.
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Market price within modeled range
Free-cash-flow DCF using a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 2.63% growth, 2.4% terminal growth, and 9.2% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 2.63%, discount rate 9.20%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 2.6% (sector default 5.3%, own revenue history -0.0%).
5-year outlook: relative outlook of about 7.6% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 24.20 (-20.9%)
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EPS-based Gordon proxy
— USD 23.64 (-22.7%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 25.97 (-15.1%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 25.67 (-16.1%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 23.74 (-22.4%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 25.96 (-15.1%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 47.16 (+54.2%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 16.51 | -85.3% |
| Base USD 24.20 | -26.4% |
| Bull USD 38.49 | 20.6% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 30.58 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.2%).
Compare: the market implies 7.3% a year, this model assumes 2.6%. The market expects more than this model does, which is why it reads as overvalued.
Sensitivity: base value per share
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.
| Growth \ Discount | 7.2% | 8.2% | 9.2% | 10.2% | 11.2% |
|---|---|---|---|---|---|
| -1.4% | 29.47 | 23.67 | 19.58 | 16.53 | 14.18 |
| 0.6% | 32.72 | 26.32 | 21.80 | 18.44 | 15.84 |
| 2.6% | 36.24 | 29.18 | 24.20 | 20.49 | 17.63 |
| 4.6% | 40.02 | 32.25 | 26.78 | 22.70 | 19.56 |
| 6.6% | 44.09 | 35.56 | 29.54 | 25.07 | 21.62 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
5 years price change: -52.09% · USD 30.96 · Market data through 05 Nov 2026 ; dashed line is today’s model base value (USD 24.20). The fair value is today’s estimate, not what the model said in the past.
Saved price history is current through 05 Nov 2026; last refreshed 06 Nov 2026 18:14 (8 hours, 47 minutes ago).
08 Nov 2021Range USD 22.41 – 70.6305 Nov 2026
Latest news
Headlines provided by EODHD. Articles may mention multiple companies and are not investment recommendations.
More detail: quality, peers, price history, dividends and financials
Quality score: 84 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue -1.9% a year | 4 / 20 |
| Balance sheet | net debt 2.0x EBITDA | 20 / 20 |
| Margins | EBITDA margin 28% | 20 / 20 |
Peers in Consumer Staples
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| BF.B (this company) | USD 30.58 | -26.4% | 19.5 | 3.5 | 3.0% | 84 |
| ORK.OL Orkla ASA | NOK 102.60 | 31.9% | 14.6 | 2.3 | 9.7% | 82 |
| WN.TO George Weston Limited | CAD 109.28 | 26.5% | 39.6 | 9.1 | 1.2% | 72 |
| CA.PA Carrefour SA | EUR 13.64 | 23.8% | 29.2 | 0.8 | 8.7% | 72 |
| KHC Kraft Heinz | USD 24.61 | 18.9% | – | 0.8 | 1.6% | 36 |
| ABF.L Associated British Foods plc | GBP 19.90 | 18.8% | 15.1 | 1.2 | 3.2% | 82 |
| ADM Archer Daniels Midland | USD 69.97 | 17.4% | 13.6 | 1.4 | 3.0% | 64 |
| AXFO.ST Axfood AB | SEK 283.80 | 7.9% | 25.0 | 8.2 | 3.1% | 70 |
| DLTR Dollar Tree | USD 131.14 | 5.2% | 15.5 | 7.3 | – | 72 |
| Peer median | 15.5 | 1.9 | ||||
Dividends
Paid in the last 12 months: USD 0.92 per share · yield 3.02% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.693 |
| 2025 | 0.911 |
| 2024 | 0.880 |
| 2023 | 0.834 |
| 2022 | 0.771 |
| 2021 | 1.727 |
Trailing 12-month financials
TTM through 31 Jul 2026 · quarterly EODHD data · data downloaded 07 Nov 2026 02:47
| Revenue | USD 3,915,000,000 |
|---|---|
| EBITDA | USD 1,087,000,000 |
| EBIT | USD 994,000,000 |
| Net income | USD 721,000,000 |
| Free cash flow | USD 925,000,000 |
| Capital expenditures | USD 88,000,000 |
| Debt | USD 2,441,000,000 |
| Cash | USD 301,000,000 |
| Working capital | USD 2,745,000,000 |
| Shares outstanding | 459,310,000 |
| Reported dividends per share | USD 0.9275 |