Brown-Forman Corporation
NYSE: BF-A · CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES
Updated 2026-04-30
Brown-Forman Corporation (BF-A) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for BF-A.
Valued
Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.
BF-A historical valuation range
Where current P/E sits in BF-A's own 5Y range.
BF-A intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
BF-A valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 16.80x
P/S Ratio — History
Current: 3.39x
Is BF-A overvalued in 2026?
Brown-Forman Corporation (BF-A) currently trades at $26.28 per share with a market capitalization of $13,256,534,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 56/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 16.8x, below its 5-year median of 22.5x. The PEG ratio of 4.70 indicates the price has run ahead of the underlying growth rate.
Looking at its own history, BF-A is currently trading cheaper than 75% of the last 5Y on P/E. This places it in the 25th percentile of its historical range, a reasonable but unremarkable position.
Our discounted cash flow model estimates BF-A's intrinsic value at $35.98 per share, against the current market price of $26.28. This implies a margin of safety of +15.01%. A meaningful cushion exists against model error, making this a reasonable risk-adjusted entry.
Financial quality is a concern. The Piotroski F-Score of 3/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.
Bottom line: BF-A trades at a fair valuation on our framework, with a Smart Value Score of 56/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.
Frequently asked questions
Is BF-A overvalued in 2026?
Based on a Smart Value Score of 56/100, BF-A is fairly valued. Price reasonably reflects current fundamentals with limited cushion in either direction.
What is BF-A's fair value?
Our DCF model estimates BF-A's intrinsic value at $35.98 per share, versus the current price of $26.28. This produces a margin of safety of +15.01%.
What P/E ratio does BF-A trade at?
BF-A trades at a P/E of 16.8x on trailing twelve-month earnings, compared to its 5-year median of 22.5x.
Is BF-A a buy based on valuation?
WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 56/100 reflects the combined read on growth, quality, and price. The profile is balanced. Best suited for investors with an existing thesis.
How does BF-A's valuation compare to its history?
On P/E, BF-A currently sits in the 25th percentile of its own 5Y range. That is below its long-run median relative to where it has traded over the period.
What is BF-A's Smart Value Score?
BF-A's Smart Value Score is 56/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.