Brown-Forman Corporation (BF.B) Stock Analysis
Score ACompounder · Grade B · Unknown
$25.88
$27.94
+8.0%
10/10
B
Compounder
Investment Thesis
Good opportunity: Solid company with good risk/reward at 5.9:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $27.94 (+8.0%). Slightly undervalued. (Methods diverge significantly. Conservative estimate shown.)
PEG-Based EPS
$2.48
FCF DCF Model
$26.11
EV/EBITDA
$33.64
Blended Fair Value
$27.94
Confidence
Low
Methods
PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
88/120 points
Investable
ROE (3Y Avg)
24.9%
ROIC-WACC Spread
6.2%
D/E Ratio
0.7x
Current Ratio
3.9x
Interest Coverage
9x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 6.2pp (got 15/25 pts)
- Leverage: D/E 0.7x (8/15 pts)
Market Sentiment
Trend & Technical
Insufficient data to calculate SMA 200.
Technical analysis unavailable
Risk & Reward
Asymmetry Ratio
5.86:1
Expected Return
+23.0%
Bull Upside
+58.7%
Bear Downside
-10.0%
Excellent asymmetry: 5.86:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of BF.B?
Based on our multi-method conviction analysis, the estimated fair value of Brown-Forman Corporation (BF.B) is $27.94. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.
Is BF.B a buy, sell, or hold?
BF.B currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 5.9:1. Quantitative score: high.
Is BF.B a high-quality stock?
Brown-Forman Corporation has a quality grade of B (88/120 points), rated as Investable. Key metrics include ROE of 24.9%, ROIC-WACC spread of 6.2%, and D/E ratio of 0.7x.
What type of stock is BF.B?
BF.B is classified as a "compounder" in our framework. High dividend: 3.5%, Mature growth: 0.8%, Dividend paying: 3.5%, Strong ROE: 19.9%, High ROE (compounder): 19.9%
What do Wall Street analysts say about BF.B?
Analyst consensus data is not currently available for BF.B.
What are the risks of investing in BF.B?
The risk/reward asymmetry ratio for BF.B is 5.86:1, rated as Very Favorable. Excellent asymmetry: 5.86:1 ratio. Upside significantly outweighs downside. The expected return is +23.0%, with bull case upside of +58.7% and bear case downside of -10.0%.
What is the current trend for BF.B?
BF.B is in a unknown trend. Insufficient data to calculate SMA 200. The technical score is —/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.