Brown-Forman Corporation (BF-A) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Brown-Forman Corporation stock (BF-A) is currently trading at $23.88. Brown-Forman Corporation PE ratio is 13.56. Brown-Forman Corporation PS ratio (Price-to-Sales) is 2.74. WallStSmart rates BF-A as Hold.
- BF-A PE ratio analysis and historical PE chart
- BF-A PS ratio (Price-to-Sales) history and trend
- BF-A intrinsic value — DCF, Graham Number, EPV models
- BF-A stock price prediction 2025 2026 2027 2028 2029 2030
- BF-A fair value vs current price
- BF-A insider transactions and insider buying
- Is BF-A undervalued or overvalued?
- Brown-Forman Corporation financial analysis — revenue, earnings, cash flow
- BF-A Piotroski F-Score and Altman Z-Score
- BF-A analyst price target and Smart Rating
Brown-Forman Corporation
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BF-A Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Brown-Forman Corporation (BF-A)
BF-A trades 100% above its Graham fair value of $15.27, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Brown-Forman Corporation (BF-A) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around peg ratio and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Brown-Forman Corporation (BF-A) Key Strengths (4)
Keeps $32 of every $100 in revenue after operating costs
Keeps $21 of every $100 in revenue as net profit
Large-cap company with substantial market presence
Every $100 of equity generates $20 in profit
Supporting Valuation Data
Brown-Forman Corporation (BF-A) Areas to Watch (6)
Very expensive relative to growth, significant premium
Revenue growing slowly at 2.00% annually
Earnings barely growing at 1.30%
Very low institutional interest at 11.32%
Revenue is fairly priced at 2.74x sales
Fairly priced relative to book value
Brown-Forman Corporation (BF-A) Detailed Analysis Report
Overall Assessment
This company scores 58/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.5/10) while 6 fall into concern territory (avg 3.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Market Cap. Profitability is solid with Return on Equity at 20.40%, Operating Margin at 31.90%, Profit Margin at 20.60%.
The Bear Case
The primary concerns are PEG Ratio, Revenue Growth, EPS Growth. Some valuation metrics including PEG Ratio (3.79), Price/Sales (2.74), Price/Book (2.62) suggest expensive pricing. Growth concerns include Revenue Growth at 2.00%, EPS Growth at 1.30%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 20.40% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 2.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (PEG Ratio, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
BF-A Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
BF-A's Price-to-Sales ratio of 2.74x sits near its historical average of 3.05x (0th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 22% below its historical high of 3.49x set in Mar 2026, and 0% above its historical low of 2.74x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~3.5x as trailing revenue scaled faster than the stock price.
Compare BF-A with Competitors
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Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Brown-Forman Corporation (BF-A) · CONSUMER DEFENSIVE › BEVERAGES - WINERIES & DISTILLERIES
The Big Picture
Brown-Forman Corporation operates as a stable business with moderate growth and solid fundamentals. Revenue reached 3.9B with 2% growth year-over-year. Profit margins are strong at 20.6%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 20.4% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 20.6% and operating margin of 31.9% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Dividend sustainability with a current yield of 3.9%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 2.6B is significantly higher than cash (319M). Monitor refinancing risk.
Sector dynamics: monitor BEVERAGES - WINERIES & DISTILLERIES industry trends, competitive moves, and regulatory changes that could impact Brown-Forman Corporation.
Bottom Line
Brown-Forman Corporation offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(1 last 3 months)
| Insider | Type | Shares |
|---|---|---|
WHITING, LAWSON E Director, President & CEO | Sell | -25,915 |
Data sourced from SEC Form 4 filings
Last updated: 11:52:45 AM
About Brown-Forman Corporation(BF-A)
NYSE
CONSUMER DEFENSIVE
BEVERAGES - WINERIES & DISTILL...
USA
The Brown Forman Corporation is one of the largest American-owned companies in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several well known brands throughout the world, including Jack Daniel's, Early Times, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Finlandia, Herradura, Korbel, and Chambord.