One-glance verdict
Undervalued
$59.98 our estimate vs market $25.94
Wall Street consensus: $28.26 (-52.9% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
Brown-Forman Corporation
BF-B · NYQ · Consumer Defensive · Beverages - Wineries & Distilleries
Current price
$25.94
52-week range
$22.61 - $31.92
Market cap
$11.90B
Balance sheet
Watch
11.18x Adequate
Net debt $2.14B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 18.1% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 16.7x P/E vs peer median 26.0x (35.7% cheaper).
- Risk Insider ownership is only 2.8% (peer median: 12.6%).
What this company does
Brown-Forman Corporation
Brown-Forman is an alcohol company that makes and sells popular spirits, most famously the Jack Daniel's family of whiskeys. The company earns its money by selling these well-known brands like Woodford Reserve bourbon and Herradura tequila to distributors who place them in stores all over the world. This matters because strong, long-lasting customer loyalty to its brands can create very consistent and predictable sales over time.
How the company got here
Founded in 1870 by George Garvin Brown, the company started with a novel idea: selling whiskey in sealed glass bottles to ensure its quality and consistency. This focus on quality helped it survive major challenges like Prohibition, when it was one of only six companies in the U.S. licensed to produce whiskey for medicinal purposes. Over the decades, it grew by acquiring iconic brands, most notably the Jack Daniel Distillery in 1956, which became its flagship product. The company has remained under the control of the Brown family throughout its history, focusing on building long-lasting, premium spirits brands.
What it actually does
Brown-Forman makes and sells a wide variety of alcoholic beverages that you would recognize in a store or bar. Its biggest and most famous product is Jack Daniel's Tennessee Whiskey. Beyond that, it offers a range of other spirits including American whiskeys like Woodford Reserve and Old Forester, tequilas such as Herradura and el Jimador, and several brands of Scotch, gin, and liqueurs. The company sells these products in over 170 countries through a network of distributors and directly to retailers.
Whiskey
This is the company's largest and most important business, anchored by the world-famous Jack Daniel's brand. It also includes other popular American whiskeys like Woodford Reserve and Old Forester, which are known as bourbons. The company also owns and sells Irish and Scotch whiskies. This segment generates the majority of the company's revenue (the money it makes from sales) and is the core of its identity.
Tequila
Brown-Forman has a significant business in tequila, which is a spirit made from the agave plant. Its main brands in this category are Herradura and el Jimador, which are sold at different price points. While smaller than its whiskey business, tequila is a key growth area for the company, especially in markets like the United States and Mexico. This part of the business competes in a very popular and growing spirits category.
Ready-to-Drink (RTDs) & Other Spirits
This part of the business includes pre-mixed cocktails sold in cans or bottles, often featuring its flagship brands like Jack Daniel's mixed with cola. It also includes other spirits in its portfolio such as Fords Gin, Diplomático Rum, and Chambord liqueur. The Ready-to-Drink category is a fast-growing slice of the business, appealing to consumers looking for convenience and new flavors.
What management is betting on now
The company's main strategy is focused on "premiumization," which means encouraging customers to buy more expensive, higher-quality versions of their spirits. They are heavily investing in their premium brands like Woodford Reserve and expanding the different versions of Jack Daniel's available. Management is also pushing to grow its sales in emerging markets (countries with growing economies) and expanding its popular ready-to-drink cocktail offerings. To become more efficient, the company has also been restructuring its teams and operations to save money that can be reinvested into growing its brands.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$81.00M
FY2025 Q3
$272.00M
FY2025 Q4
$102.00M
FY2026 Q1
$129.00M
FY2026 Q2
$107.00M
FY2026 Q3
$392.00M
FY2026 Q4
$265.00M
FY2027 Q1
$161.00M
Revenue
$911.00M
Net income
$176.00M
Diluted EPS
0.38
Operating cash flow
$173.00M
Free cash flow
$161.00M
Fetching…
Sources
Revenue
$912.00M
Net income
$54.00M
Diluted EPS
0.12
Operating cash flow
$291.00M
Free cash flow
$265.00M
Fetching…
Sources
Revenue
$1.06B
Net income
$267.00M
Diluted EPS
0.58
Operating cash flow
$417.00M
Free cash flow
$392.00M
Fetching…
Sources
Revenue
$1.04B
Net income
$224.00M
Diluted EPS
0.47
Operating cash flow
$132.00M
Free cash flow
$107.00M
Fetching…
Sources
Revenue
$924.00M
Net income
$170.00M
Diluted EPS
0.36
Operating cash flow
$160.00M
Free cash flow
$129.00M
Fetching…
Sources
Revenue
$894.00M
Net income
$146.00M
Diluted EPS
0.31
Operating cash flow
$152.00M
Free cash flow
$102.00M
Fetching…
Sources
Revenue
$1.03B
Net income
$270.00M
Diluted EPS
0.57
Operating cash flow
$317.00M
Free cash flow
$272.00M
Fetching…
Sources
Revenue
$1.09B
Net income
$258.00M
Diluted EPS
0.55
Operating cash flow
$112.00M
Free cash flow
$81.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $59.98 vs current price $25.94
Wall Street consensus is the average analyst price target: $28.26 (-52.9% lower than our fair-value estimate).
Our most-likely fair value is $59.98 a share — about 131.2% above today's price of $25.94, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $2.1B. Interest coverage 11.2x.
Net debt
$2.14B
Interest coverage
11.18x
Brown-Forman Corporation's profit covers its interest bill about 11.2 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
BF-B
BASELINE
Brown-Forman Corporation
Total debt $2.44B Interest coverage 11.18x This is the baseline the peer rows are being compared against.
Total debt $22.20B Interest coverage 2.94x -74% vs BF-B Carries about 3.8x less debt cushion than BF-B.
Total debt $10.53B Interest coverage 7.92x -29% vs BF-B Carries about 1.4x less debt cushion than BF-B.
Total debt $14.57B Interest coverage 4.88x -56% vs BF-B Carries about 2.3x less debt cushion than BF-B.
Total debt $882.80M Interest coverage 4.86x -57% vs BF-B Carries about 2.3x less debt cushion than BF-B.
Total debt $3.22B Interest coverage 5.72x -49% vs BF-B Carries about 2.0x less debt cushion than BF-B.
What you should know
The case for and against BF-B
3 Rewards
1 Risk
Rewards
-
Returns 18.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 16.7x P/E vs peer median 26.0x (35.7% cheaper).
Risks
-
Insider ownership is only 2.8% (peer median: 12.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.74x
Forward P/E
15.14x
P/B
3.00x
P/S
3.04x
EV/EBITDA
11.84x
PEG ratio
1.98x
Profitability
How much profit each dollar creates
Gross margin
60.7%
Operating margin
27.6%
Net margin
18.4%
ROE
18.1%
ROA
8.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
3.26x
Quick ratio
0.93x
Total debt
$2.44B
Total cash
$301.00M
Growth
How the business has been compounding
Revenue TTM
$3.92B
Revenue 5Y CAGR
-0.0%
EPS TTM
1.55
EPS 5Y CAGR
-2.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.01B
Free CF TTM
$893.00M
FCF margin
22.8%
Dividend
Shareholder payout
Yield
3.6%
Payout ratio
59.3%
Last ex-div date
2026-09-03