Brown-Forman Corporation
NYSE: BF-A · CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES
Updated 2026-06-03
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.
Standard discounted cash flow models produce unreliable output for unprofitable or near-breakeven companies. Revenue-based multiples such as P/S and EV/Sales, combined with the historical valuation position above, give a more reliable read for this stock.
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: 14.85x
P/S Ratio — History
Current: 3.00x
Is BF-A overvalued in 2026?
Brown-Forman Corporation (BF-A) currently trades at $27.02 per share with a market capitalization of $11,715,291,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 58/100. 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 14.8x, below its 5-year median of 18.8x. The PEG ratio of 4.19 indicates the price has run ahead of the underlying growth rate.
Looking at its own history, BF-A is currently trading cheaper than 97% of the last 5Y on P/E. This places it in the 3th percentile of its historical range, a level that has historically coincided with attractive entry points.
A standard DCF model does not produce reliable output for BF-A under current conditions. For unprofitable or near-breakeven companies, revenue-based multiples such as EV/Sales and historical P/S percentile are more informative than intrinsic value calculations.
The Piotroski F-Score of 4/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.
Bottom line: BF-A trades at a fair valuation on our framework, with a Smart Value Score of 58/100. 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?
BF-A scores 58/100 on our Smart Value Score (Grade C+), a mixed overall profile. A standard DCF is unreliable here given the profitability profile, so valuation leans on revenue-based measures like EV/Sales and the P/S percentile below.
What is BF-A's fair value?
A standard DCF is unreliable for BF-A given its current profitability profile. Revenue-based approaches like EV/Sales or the historical P/S percentile are more informative for this stock.
What P/E ratio does BF-A trade at?
BF-A trades at a P/E of 14.8x on trailing twelve-month earnings, against a 5-year median of 18.8x. P/E is what you pay per dollar of profit, and sitting below its own median means the stock is cheaper than usual relative to its earnings.
Is BF-A a buy based on valuation?
Our Smart Value rating for BF-A is Hold, from a Smart Value Score of 58/100 that blends growth, quality, and valuation. The profile is balanced and best suited to investors who already have a thesis. This is research to inform your decision, not personalized financial advice.
How does BF-A's valuation compare to its history?
On P/E, BF-A sits in the 3rd percentile of its own 5Y range, historically cheap relative to where it has traded. A low percentile means today's multiple is near the bottom of its historical band.
What is BF-A's Smart Value Score?
BF-A's Smart Value Score is 58/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.