Brown Stock Performance

BF-B
 Stock
  

USD 76.95  0.71  0.91%   

On a scale of 0 to 100, Brown Forman holds a performance score of 21. The firm shows a Beta (market volatility) of 0.8177, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Brown's beta means in this case. As returns on the market increase, Brown Forman returns are expected to increase less than the market. However, during the bear market, the loss on holding Brown Forman will be expected to be smaller as well. Although it is vital to follow Brown Forman historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Brown Forman technical indicators, you can presently evaluate if the expected return of 0.36% will be sustainable into the future. Please makes use of Brown Forman standard deviation, information ratio, treynor ratio, as well as the relationship between the variance and jensen alpha to make a quick decision on whether Brown Forman price patterns will revert.
  
Brown Performance
21 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Brown Forman are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Brown Forman sustained solid returns over the last few months and may actually be approaching a breakup point. ...more

Brown Price Channel

Quick Ratio1.63
Fifty Two Week Low60.23
Target High Price90.00
Fifty Two Week High76.65
Payout Ratio42.30%
Trailing Annual Dividend Yield0.95%
Target Low Price62.00

Brown Forman Relative Risk vs. Return Landscape

If you would invest  6,273  in Brown Forman on May 20, 2022 and sell it today you would earn a total of  1,493  from holding Brown Forman or generate 23.8% return on investment over 90 days. Brown Forman is currently generating 0.3588% in daily expected returns and assumes 1.2937% risk (volatility on return distribution) over the 90 days horizon. In different words, 11% of stocks are less volatile than Brown, and 94% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Brown Forman is expected to generate 1.1 times more return on investment than the market. However, the company is 1.1 times more volatile than its market benchmark. It trades about 0.28 of its potential returns per unit of risk. The DOW is currently generating roughly 0.12 per unit of risk.

Brown Forman Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Brown Forman's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Brown Forman, and traders can use it to determine the average amount a Brown Forman's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.2773

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Estimated Market Risk
 1.29
  actual daily
 
 11 %
of total potential
 
1111
Expected Return
 0.36
  actual daily
 
 6 %
of total potential
 
66
Risk-Adjusted Return
 0.28
  actual daily
 
 21 %
of total potential
 
2121
Based on monthly moving average Brown Forman is performing at about 21% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Brown Forman by adding it to a well-diversified portfolio.

About Brown Forman Performance

To evaluate Brown Forman Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Brown Forman generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Brown Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Brown Forman market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Brown's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment 23.56  29.34 
Return on Average Assets 13.00  16.14 
Return on Average Equity 31.08  32.98 
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. The company was founded in 1870 and is headquartered in Louisville, Kentucky. Brown Forman operates under BeveragesWineries Distilleries classification in the United States and is traded on NYQ Exchange. It employs 5200 people.

Things to note about Brown Forman

Checking the ongoing alerts about Brown Forman for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Brown Forman help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Brown Forman Alerts

Equity Alerts and Improvement Suggestions

Continue to Trending Equities. Note that the Brown Forman information on this page should be used as a complementary analysis to other Brown Forman's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Brown Forman price analysis, check to measure Brown Forman's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brown Forman is operating at the current time. Most of Brown Forman's value examination focuses on studying past and present price action to predict the probability of Brown Forman's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Brown Forman's price. Additionally, you may evaluate how the addition of Brown Forman to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Brown Forman's value and its price as these two are different measures arrived at by different means. Investors typically determine Brown Forman value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brown Forman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.