Brown-Forman Corporation (BF.B) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+33.6%

$40.29

vs $30.15 price

Levered DCF

$42.15

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.4

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	16.84×	18.93×	22.26×	40.06×	38.54×	40.36×	35.95×	30.63×
P/B	2.99×	4.12×	6.48×	9.57×	11.8×	13.74×	15.05×	15.5×
P/S	3.06×	4.14×	5.46×	7.4×	8.21×	10.55×	8.84×	7.68×
EV / EBITDA	11.54×	14.54×	16.83×	28.49×	26.43×	30.6×	27.16×	23.05×
Gross margin	60.5%	58.9%	60.5%	59.0%	60.8%	60.5%	63.2%	65.2%
Operating margin	28.2%	29.4%	27.5%	26.7%	30.6%	33.7%	32.4%	34.4%
Net margin	18.2%	21.9%	24.5%	18.5%	21.3%	26.1%	24.6%	25.1%
Current ratio	3.24×	3.88×	2.59×	3.51×	3.65×	4.27×	3.71×	3.87×
Debt / equity	0.54×	0.68×	0.88×	0.89×	0.83×	0.96×	1.32×	1.51×
Interest coverage	12.46×	9.57×	9.03×	12.52×	14.68×	14.4×	13.3×	13×
Dividend yield	3.6%	2.6%	1.8%	1.2%	2.6%	0.9%	1.1%	1.2%
Payout ratio	59.7%	48.3%	39.5%	48.3%	99.2%	37.4%	39.3%	37.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	17.8%	21.8%	29.1%	24.0%	30.6%	34.0%	41.9%	50.7%
Return on invested capital	13.3%	12.8%	12.3%	12.5%	16.2%	16.8%	17.1%	19.9%
Return on assets	9.1%	10.7%	12.5%	10.1%	13.1%	13.8%	14.3%	16.2%
Free cash flow yield	7.4%	2.6%	1.8%	1.5%	2.5%	2.1%	2.1%	2.7%
Earnings yield	5.9%	5.3%	4.5%	2.5%	2.6%	2.5%	2.8%	3.3%
Enterprise value	$13.9B	$18.8B	$25.4B	$33.8B	$33.7B	$37.9B	$31.6B	$27.7B
Net debt / EBITDA	1.53×	1.77×	1.76×	2.14×	1.1×	1.14×	1.65×	1.82×
Cash conversion cycle (days)	489	583	573	490	454	501	521	499