Brown Stock Valuation

BF-B
 Stock
  

USD 77.66  0.21  0.27%   

Do you wonder what the value of Brown Forman is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Brown Forman, is its stock price multiplied by the total number of shares outstanding, calculating Brown Forman's enterprise value requires a different approach. It uses Brown Forman's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Brown Forman shows a prevailing Real Value of $87.45 per share. The current price of the firm is $77.66. At this time, the firm appears to be undervalued. Our model approximates the value of Brown Forman from analyzing the firm fundamentals such as Profit Margin of 21.31 %, return on equity of 31.08 %, and Current Valuation of 37.03 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Brown Forman Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Brown Forman's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 77.66
Please note that Brown Forman's price fluctuation is very steady at this time. Calculation of the real value of Brown Forman is based on 3 months time horizon. Increasing Brown Forman's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Brown Forman is useful when determining the fair value of the Brown stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Brown Forman. Since Brown Forman is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Brown Stock. However, Brown Forman's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
87.45
Real Value
88.73
Upside
Estimating the potential upside or downside of Brown Forman helps investors to forecast how Brown stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Brown Forman more accurately as focusing exclusively on Brown Forman's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
70.6074.7378.86
Details
Hype
Prediction
LowEstimated ValueHigh
76.7378.0179.29
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.591.631.68
Details

Brown Forman Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Brown Forman's current stock value. Our valuation model uses many indicators to compare Brown Forman value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Brown Forman competition to find correlations between indicators driving Brown Forman's intrinsic value. More Info.
Brown Forman is number one stock in price to sales category among related companies. It is number one stock in price to earning category among related companies reporting about  5.26  of Price to Earning per Price to Sales. As of August 18, 2022, Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to decline to about 1.1 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brown Forman by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brown Forman's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Brown Forman's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Brown Forman's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Brown Forman and how it compares across the competition.

About Brown Forman Valuation

The stock valuation mechanism determines the current worth of Brown Forman on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Brown Forman. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Brown Forman based exclusively on its fundamental and basic technical indicators. By analyzing Brown Forman's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Brown Forman's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Brown Forman. We calculate exposure to Brown Forman's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Brown Forman's related companies.
Last ReportedProjected for 2022
Profit Margin 21.31  20.92 
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniels, Reserve, Old Forester, Coopers Craft, Herradura, el Jimador, New Mix, Korbel Champagnes, Sonoma-Cutrer, Finlandia, GlenDronach, Benriach, Glenglassaugh, Chambord, Slane, and Fords Gin brands. It is also involved in the sale of used barrels, bulk whiskey, and wine and provision of contract bottling services. The company serves retail customers and consumers through distributors or state governments and retailers, wholesalers, and provincial governments directly. It has operations in the United States, Germany, Australia, the United Kingdom, Mexico, and internationally. The company was founded in 1870 and is headquartered in Louisville, Kentucky.
Brown Forman's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Brown Forman's value is low or high relative to the company's performance and growth projections. Determining the market value of Brown Forman can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Brown Forman represents a small ownership stake in the entity. As a stockholder of Brown, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Brown Forman Dividends Analysis For Valuation

As of August 18, 2022, Earnings per Basic Share is expected to decline to 1.52. In addition to that, Earnings per Diluted Share is expected to decline to 1.52
There are various types of dividends Brown Forman can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Brown shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Brown Forman directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Brown pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Brown Forman by the value of the dividends paid out.

Brown Forman Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Brown Forman does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.63
Earnings Quarterly Growth25.80%
Revenue Growth22.70%
Payout Ratio42.30%
Enterprise Value To Ebitda28.16
Earnings Growth24.00%
Enterprise Value To Revenue9.42
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Complementary Tools for Brown Stock analysis

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.
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
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.