Brown Forman Valuation
| BF5B Stock | EUR 31.13 0.31 0.99% |
At this time, the firm appears to be overvalued. Brown Forman shows a prevailing Real Value of €28.77 per share. The current price of the firm is €31.13. Our model approximates the value of Brown Forman from analyzing the firm fundamentals such as Current Valuation of 36.47 B, profit margin of 0.21 %, and Return On Equity of 0.3 as well as examining its technical indicators and probability of bankruptcy.
Overvalued
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.
The fair value of the Brown stock is determined by what a typical buyer is willing to pay for full or partial control of Brown Forman. 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 31.13 | Real 28.77 | Hype 31.13 | Naive 32.46 |
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: Brown Forman Total Value Analysis
Brown Forman is currently forecasted to have takeover price of 36.47 B with market capitalization of 28.86 B, debt of 2.02 B, and cash on hands of 307 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Brown Forman fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
36.47 B | 28.86 B | 2.02 B | 307 M |
Brown Forman Investor Information
About 51.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.86. Brown Forman last dividend was issued on the 7th of March 2023. The entity had 2:1 split on the 19th of August 2016. Based on the analysis of Brown Forman's profitability, liquidity, and operating efficiency, Brown Forman is not in a good financial situation at the moment. It has a very high risk of going through financial straits in March.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 61.71 percent. This implies that the Company is making €0.62 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 309.95 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. Consequently, these institutions are subject to different rules and regulations than regular investors in Brown Forman. Please watch out for any change in the institutional holdings of Brown Forman as this could mean something significant has changed or is about to change at the company. 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 revenue of 3.93 B. Net Income was 838 M with profit before overhead, payroll, taxes, and interest of 2.39 B.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.Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwide. Brown-Forman Corporation was founded in 1870 and is headquartered in Louisville, Kentucky. BROWN FORMAN operates under Beverages - Wineries Distilleries classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4700 people.
8 Steps to conduct Brown Forman's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Brown Forman's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Brown Forman's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Brown Forman's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Brown Forman's revenue streams: Identify Brown Forman's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Brown Forman's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Brown Forman's growth potential: Evaluate Brown Forman's management, business model, and growth potential.
- Determine Brown Forman's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Brown Forman's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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.
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