BF.B
Brown Forman IncConsumer Defensive / Beverages - Wineries & DistilleriesINTACTBrown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells a variety of alcohol beverages. The company 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, Chambord, Coopers' Craft, Diplomático, 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, and provincial governments directly. It operates in the United States, Germany, Australia, the United Kingdom, Canada, Spain, France, Mexico, Poland, Brazil, Türkiye, and internationally. Brown-Forman Corporation was founded in 1870 and is headquartered in Louisville, Kentucky.
Price vs. Intrinsic Value Corridor
Margin of Safety Buy Zone (<25% Discount)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $781 | $888 | $1,011 | $1,151 | $1,309 | $1,368 | $1,430 | $1,494 | $1,561 | $1,632 |
| Present Value (PV) | $716 | $748 | $781 | $815 | $851 | $816 | $782 | $750 | $719 | $689 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
EXTREMELY LOW BARRIERAt the current price of $26.22, the market is assuming the business will compound Free Cash Flow at -2.2% per year for the next decade with a 9% hurdle rate.
Surveil BF.B with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for Brown Forman Inc. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 27.6% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: Brown Forman Inc (BF.B) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Brown Forman Inc.
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