Brown Forman Valuation
| BF-B Stock | USD 40.69 0.39 0.97% |
At this time, the firm appears to be undervalued. Brown Forman shows a prevailing Real Value of $52.01 per share. The current price of the firm is $40.69. Our model approximates the value of Brown Forman from analyzing the firm fundamentals such as Profit Margin of 0.24 %, return on equity of 0.29, and Current Valuation of 21.71 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Brown Forman's valuation include:
Price Book 5.4973 | Enterprise Value 21.7 B | Enterprise Value Ebitda 14.768 | Price Sales 4.6338 | Forward PE 21.7865 |
Undervalued
Today
Please note that Brown Forman's price fluctuation is very steady at this time. Calculation of the real value of Brown Forman is based on 3 months time horizon. Increasing Brown Forman's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Brown Forman is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Brown Stock. However, Brown Forman's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 40.69 | Real 52.01 | Target 69.84 | Hype 40.68 | Naive 41.95 |
The real value of Brown Stock, also known as its intrinsic value, is the underlying worth of Brown Forman Company, which is reflected in its stock price. It is based on Brown Forman's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Brown Forman's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Brown Forman helps investors to forecast how Brown stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Brown Forman more accurately as focusing exclusively on Brown Forman's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Brown Forman's intrinsic value based on its ongoing forecasts of Brown Forman's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Brown Forman's closest peers. If more than one evaluation category is relevant for Brown Forman we suggest using both methods to arrive at a better estimate.
Brown Forman Cash |
|
Brown Valuation Trend
Comparing Brown Forman's enterprise value against its market capitalization is a good way to estimate the value of Brown Forman uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Brown Forman Total Value Analysis
Brown Forman is currently estimated to have valuation of 21.71 B with market capitalization of 18.96 B, debt of 3.1 B, and cash on hands of 899 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Brown Forman fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
21.71 B | 18.96 B | 3.1 B | 899 M |
Brown Forman Investor Information
About 63.0% of the company shares are held by institutions such as insurance companies. The company last dividend was issued on the 3rd of September 2024. Brown Forman had 5:4 split on the 1st of March 2018. Based on the analysis of Brown Forman's profitability, liquidity, and operating efficiency, Brown Forman may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.2 | 0.3384 |
|
| |||||
| Total Cash From Operating Activities | 460.9 M | 647 M |
|
| |||||
| Operating Income | 1.5 B | 1.4 B |
|
|
Brown Forman Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Brown Forman has an asset utilization ratio of 51.16 percent. This suggests that the Company is making $0.51 for each dollar of assets. An increasing asset utilization means that Brown Forman is more efficient with each dollar of assets it utilizes for everyday operations.Brown Forman Ownership Allocation
Brown Forman holds a total of 303.54 Million outstanding shares. Over half of Brown Forman's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Brown Forman Profitability Analysis
The company reported the previous year's revenue of 4.18 B. Net Income was 1.02 B with profit before overhead, payroll, taxes, and interest of 2.39 B.Brown Forman Past Distributions to stockholders
| 1st of October 2024 | ||
| 1st of July 2024 | ||
| 1st of April 2024 | ||
| 2nd of January 2024 | ||
| 2nd of October 2023 | ||
| 3rd of July 2023 | ||
| 3rd of April 2023 | ||
| 3rd of January 2023 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Brown Forman's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Brown Forman and how it compares across the competition.
About Brown Forman Valuation
The stock valuation mechanism determines Brown Forman's current worth on a weekly basis. Our valuation model uses a comparative analysis of Brown Forman. We calculate exposure to Brown Forman's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Brown Forman's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 1.6 B | |
| Pretax Profit Margin | 0.31 | 0.19 | |
| Operating Profit Margin | 0.34 | 0.20 | |
| Net Profit Margin | 0.25 | 0.13 | |
| Gross Profit Margin | 0.60 | 0.50 |
Brown Forman Quarterly Retained Earnings |
|
A single share of Brown Forman represents a small ownership stake in the entity. As a stockholder of Brown, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Brown Forman Dividends Analysis For Valuation
At present, Brown Forman's Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's Dividend Payout Ratio is expected to grow to 0.40, whereas Dividends Paid is forecasted to decline to about 252.1 M. . At present, Brown Forman's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.05, whereas Retained Earnings Total Equity is forecasted to decline to about 3.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 404 M | 252.1 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.39 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | 1.02 | 1.69 |
There are various types of dividends Brown Forman can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Brown shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Brown Forman directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Brown pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Brown Forman by the value of the dividends paid out.
Brown Forman Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 477.2 M | |
| Quarterly Earnings Growth Y O Y | -0.146 | |
| Forward Price Earnings | 21.7865 |
Brown Forman Current Valuation Indicators
Valuation refers to the process of determining the present value of Brown Forman and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Brown we look at many different elements of the entity such as Brown's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Brown Forman, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Brown Forman's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Brown Forman's worth.Complementary Tools for Brown Stock analysis
When running Brown Forman's price analysis, check to measure Brown Forman's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brown Forman is operating at the current time. Most of Brown Forman's value examination focuses on studying past and present price action to predict the probability of Brown Forman's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brown Forman's price. Additionally, you may evaluate how the addition of Brown Forman to your portfolios can decrease your overall portfolio volatility.
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |