Beverages - Wineries & Distilleries · NYSE
Current Price
$24.87
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Brown-Forman Corporation with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
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 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 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.
Earnings Yield
6.88%
ROE (TTM)
19.9%
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.
Whether BF-B is overvalued depends on comparing its PE ratio to Beverages - Wineries & Distilleries peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Brown-Forman Corporation using PE: (1) Compare the current PE against the Beverages - Wineries & Distilleries median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 19.9%, 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.
