Brown-Forman
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$25.93
FAIR PRICE
$21.48
MARGIN
$4.45
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FPI RATING
Strong profitability and stable earnings and revenue, but limited growth momentum.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$17.18
Fair price × 0.80
DISTANCE
33.7%
Price to entry level
At the current price of $25.93, BF-A trades 33.7% above the conservative entry level of $17.18. This entry level represents a 20% margin of safety below the calculated fair price of $21.48 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate BF-A's fair price
Brown-Forman's fair price of $21.48 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Defensive peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $25.93, BF-A trades 17.2% above its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting BF-A's risk profile.
RELATIVE · 30%
Comparing BF-A's valuation multiples against Consumer Defensive peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for BF-A, weighted by recency and analyst accuracy.
TRY IT YOURSELF
Want to test your own assumptions? Use our free calculators to estimate BF-A's fair value with your own inputs.
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What is the fair price of BF-A?+
Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Defensive peers (30%), and analyst consensus (20%), the fair price for Brown-Forman is $21.48. At the current market price of $25.93, BF-A trades 17.2% above its calculated fair value.
Is BF-A overvalued or undervalued?+
Brown-Forman is currently overvalued based on our valuation model. The stock trades at $25.93, which is 17.2% above the fair price of $21.48. The P/E ratio of 14.8x is a key metric in the valuation.
What is the margin of safety for BF-A?+
With a 20% margin of safety applied to the fair price of $21.48, the conservative entry level for BF-A is $17.18. At the current market price of $25.93, the stock trades 33.7% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is BF-A's fair price updated?+
We update fair price calculations for BF-A daily after market close. The current fair price of $21.48 incorporates the latest market data and sector multiples.
What factors affect BF-A's fair price calculation?+
BF-A's fair price of $21.48 is derived from DCF analysis (50% weight), relative valuation against Consumer Defensive peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 14.8x, ROE of 19.9%, and dividend yield of 3.60%.
Is BF-A a good buy right now?+
At $25.93, BF-A trades 17.2% above our fair value estimate of $21.48. The stock is currently overvalued. ROE stands at 19.9% (strong). Fair Price Index provides valuation data — always do your own research before investing.
Does BF-A pay dividends?+
BF-A has a dividend yield of 3.60%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.