Brown-Forman Corporation (BF-B) Stock Valuation — PE Analysis
Beverages - Wineries & Distilleries · NYSE
Current Price
$28.44
PE Ratio (TTM)
18.7x
Intrinsic Value
$27.08
-5.0% margin of safety
COMPETITIVE MOAT
↑Iconic Brand Equity
Jack Daniel's and other premium brands possess strong global recognition and loyalty. This allows for premium pricing and sustained demand across generations.
↑Distribution Network Strength
Brown-Forman has established extensive and efficient global distribution channels. This provides significant barriers to entry for smaller competitors seeking market access.
↑Aging Inventory Value
The company holds significant aging whiskey inventory, a valuable asset with increasing scarcity. This creates a long-term revenue stream and pricing power.
INVESTMENT RISKS
↓Shifting Consumer Preferences
Changes in consumer tastes towards lower-alcohol or non-alcoholic beverages could impact demand for traditional spirits. The company must adapt its portfolio to these trends.
↓Regulatory and Tax Environment
Increased excise taxes or stricter regulations on alcohol production and sales in key markets pose a threat. These can directly impact profitability and market access.
↓Competition from Craft Distillers
The growing number of smaller, agile craft distilleries can chip away at market share. They often appeal to niche markets and offer unique product variations.
Base case
BF-B base case PE valuation
At a current price of $28.44, the base case PE valuation puts BF-B fair value near $27.08 per share. That figure assumes 3.2% yearly earnings growth, a target PE multiple of 18.23x, and a 10% discount rate.
Intrinsic Value
$27.08
Margin of safety
-5.0%
Expected annual return
-1.0%
Base case assumptions: 3.2% annual earnings growth, 18.23x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BF-B PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Brown-Forman Corporation respond.
Open PE Calculator for BF-BCompany Overview
Brown-Forman Corporation, along with its subsidiaries, operates globally within the alcoholic beverage industry. The company is actively involved in the production, distillation, bottling, international trade (importing and exporting), marketing, and sale of a diverse portfolio of alcoholic products. Its extensive offerings encompass a wide variety of spirits, wines, and whiskey products, including specialty whiskey spirits and flavored whiskey liqueurs. The range also features convenient ready-to-drink and ready-to-pour options, pre-mixed cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and other liqueurs. These beverages are primarily marketed under prominent brands such as Jack Daniel's, Reserve, Old Forester, Coopers' Craft, Herradura, el Jimador, New Mix, Korbel Champagnes, Sonoma-Cutrer, Finlandia, GlenDronach, Benriach, Glenglassaugh, Chambord, Slane, and Fords Gin. Beyond beverage sales, Brown-Forman also engages in the sale of used barrels, bulk whiskey, and wine, in addition to offering contract bottling services. The company's distribution model involves reaching retail customers and end consumers through independent distributors or state governments, while directly supplying retailers, wholesalers, and provincial governments. With a history dating back to its founding in 1870, Brown-Forman Corporation is headquartered in Louisville, Kentucky, and conducts substantial operations across the United States, Germany, Australia, the United Kingdom, Mexico, and numerous other international markets.
Financial Metrics — BF-B PE Stock Valuation Data
PE Ratio (TTM)
18.7x
PEG Ratio
n/m
Earnings Yield
5.48%
ROE (TTM)
17.6%
Revenue/Share (TTM)
$8.56
Dividend Yield
3.23%
Debt/Equity
0.54x
Frequently Asked Questions
What is the PE ratio of BF-B?
The trailing twelve-month PE ratio of BF-B reflects how much investors pay per dollar of Brown-Forman Corporation's earnings. This metric is most useful when compared to Beverages - Wineries & Distilleries peers and the company's own historical range.
Is BF-B overvalued based on PE ratio?
BF-B's PE of 18.7x combined with a PEG ratio of -1.08 provides a growth-adjusted perspective. BF-B has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Beverages - Wineries & Distilleries, a DCF analysis may be more appropriate.
How do I value BF-B stock using PE ratio?
To value Brown-Forman Corporation using PE: (1) Compare the current PE (18.7x) against the Beverages - Wineries & Distilleries median to assess relative pricing, (2) check the PEG ratio (-1.08) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of BF-B?
BF-B's PEG ratio is -1.08, calculated by dividing the PE ratio (18.7x) by the expected earnings growth rate. Because BF-B has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for BF-B stock valuation?
PE ratio gives a quick relative read — how BF-B is priced versus Beverages - Wineries & Distilleries peers. DCF provides an absolute value based on projected free cash flows. For BF-B, with a strong ROE of 17.6%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See BF-B DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value BF-B with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.