Brown Forman Inc

Valuation Analysis

About the Company

Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells a variety of alcohol beverages. It 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, 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,

Brown Forman Inc Stock at a Glance

Brown Forman Inc (BF-B) is currently trading at $27.01 with a market capitalization of $12.4B. The trailing P/E ratio stands at 17.65x, with a forward P/E of 15.82x. The 52-week range spans from $22.61 to $31.92; the current price is 15.4% below the yearly high. Year-over-year revenue growth stands at +2.0%. The net profit margin stands at 18.2%.

💰 Dividend

Brown Forman Inc pays an annual dividend of $0.92 per share, representing a yield of 3.41%. The payout ratio stands at 59.8%.

📊 Analyst Rating

16 analysts rate Brown Forman Inc (BF-B) on consensus: Hold. The average price target is $27.77, implying +2.83% from the current price. Analyst price targets range from $20.00 to $37.00.

Brown Forman Inc: The Investment Case in Detail

Brown Forman Inc (BF-B) operates in the Consumer Defensive — specifically Beverages - Wineries & Distilleries — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 60.54%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 18.2%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Revenue growth has slowed to just 2%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Short interest sits at 12.54% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

At a PEG of 4.34, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 15.82x is meaningfully below the trailing 17.65x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.41% combined with a payout ratio of 59.8% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (12.54%).

Trading Data

💵 Dividend Info

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