StocksBF.B

BF.B

Brown Forman IncConsumer Defensive / Beverages - Wineries & DistilleriesINTACT

Brown-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.

Share Price
$26.22
52W: $22.61 - $31.92
DCF Fair Value
$56.46
+53.6% MoS
P/E (TTM)
16.9x
ROIC
20.7%
Operating Margin
27.6%
FCF Yield
5.7%
Debt / Equity
0.62x
Piotroski Score
9/9
Altman Z-Score
3.66
Market Cap
$12B

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.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$56.46
MOS Buy Target (-25%)
$42.35
Valuation Overlays:

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.

Current Market Price
$26.22
DCF Fair Value
$56.67
+53.7% MoS
$686M
$100M$686M (Reported)$50,000M
13.8%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$2,100M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$7.7B
PV of Terminal Value
$10.9B
Implied Enterprise Value
$18.5B
Implied Equity Value
$16.4B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($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.

Graham Number-50.9% Premium
$17.37

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $1.55BVPS: $8.65
Revised Graham Formula+36.8% MoS
$41.49

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.

Buffett Owner Earnings8.6% Yield
$2.25 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.7BYield: 8.6%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER
-2.2% CAGR (Next 10 Yrs)

At 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.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

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.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 27.6% • Floor > 10%

Solvency Guard

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.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Brown Forman Inc has an estimated DCF intrinsic fair value of $56.46 per share compared to its current market price of $26.22. This represents an estimated 53.6% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $17.37.

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