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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
BF.B — frequently asked questions
Is Brown-Forman Corporation Class B overvalued?
In our latest published analysis dated 2026-09-20, BF.B looks meaningfully undervalued. The price recorded at analysis is 25.9 USD versus our fair value of 30.2 USD; the high endpoint is presented separately as potential value of 53.7 USD. That implies roughly 16.3% upside to fair value at that date.
Our latest published report, analyzed 2026-09-20, gives BF.B a fair value of 30.2 USD and a potential value of 53.7 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Brown-Forman Corporation Class B's archetype; it is a dated research output, not a live price.
Should I buy BF.B now?
Our latest published rating for BF.B, analyzed 2026-09-20, is Buy. Brown-Forman Corporation Class B looks meaningfully undervalued at the analysis-date price of 25.9 USD versus fair value of 30.2 USD; potential value is 53.7 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for BF.B?
The dedicated bear-case section in our report analyzed 2026-09-20 documents Brown-Forman Corporation Class B's material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is BF.B's rating?
Our latest published rating for BF.B, analyzed 2026-09-20, is Buy, with a published moat assessment of 7/10 (Narrow). It reflects our fair value of 30.2 USD, the potential value of 53.7 USD, and the price recorded at analysis (25.9 USD).
لم تتم ترجمة هذا التقرير بعد. قم بالتحديث خلال بضع دقائق بمجرد أن تلحق قائمة انتظار الترجمة بالركب.
§1 الملخص التنفيذيEN
الإجابة في 30 ثانيةBuy
السعر مقابل القيمة
Price
$25.94
Fair value
$30.17
Potential value
$53.74
As of
2026-09-18
لماذا قد تنجح الفرضية
The clearest catalyst for outperformance is the completion of domestic distributor destocking coupled with rapid international growth in canned ready-to-drink Jack Daniel's and super-premium tequila in Mexico ($319M in FY2026 net sales), which expands operating leverage and lifts cash flows toward Potential value.
ما الذي سيغيّر تقييمنا
Wholesale distributor shipments in the domestic United States market contract by more than 3.0% YoY over consecutive fiscal quarters.
We rate Brown-Forman a Buy. At the report-date price of $25.94 on September 18, 2026, shares trade 16.31% below our Fair value of $30.17. The key downside risk is prolonged domestic wholesale distributor inventory destocking in the United States that depresses shipment volumes. The strongest catalyst for outperformance is the normalization of distributor orders alongside international expansion in ready-to-drink premixes and super-premium tequila.2,5
A Buy rating means we expect Brown-Forman to deliver attractive total returns for long-term investors through steady capital appreciation and regular dividend payments. The business possesses a narrow economic moat driven by enduring brand loyalty and proprietary barrel cooperages.
The report was prepared when shares stood at $25.94 on September 18, 2026. This trading level offers a 16.31% discount to our central Fair value of $30.17. If global brand momentum accelerates, our upside envelope points to a Potential value of $53.74.2
The primary risk that could challenge our thesis is protracted wholesale distributor inventory destocking and consumer trade-down in the United States, which represents $1,649M in net sales. If distributors permanently lower inventory buffers, annual wholesale shipments would contract, reducing operating leverage on barrel and packaging overhead and compressing operating margins below 22.48%.5
The business can outperform as distributor destocking runs its course and core brand pull reasserts volume growth across international channels. Premium pricing power sustained gross margins of 60.54% in FY2026. As capital expenditures moderate following distillery expansions, free cash flow converts directly into shareholder distributions and debt repayment, driving per-share value toward our Fair value of $30.17 and ultimately toward Potential value of $53.74.3,4,5
Free cash flow rebounded to $893M in FY2026 as major capital spending on barrel cooperages normalized, fully covering dividend distributions.3
International and Emerging Market Runway
International markets account for 58% of sales, led by Developed International ($1,095M) and Mexico ($319M), driving premium tequila and RTD volume.5
توصية الدار
We rate Brown-Forman a Buy because its premium brand pricing power and high gross margins provide durable cash flow that more than offsets temporary wholesale distributor inventory adjustments.4
نظرة عامة على الشركة
BROWN FORMAN CORP sells its products in over 170 countries. The United States, its most important market, accounted for 42% of its net sales in fiscal 2026, and the other 58% were outside of the United States. The table below shows the percentage of total reported net sales for its top markets in its three most recent fiscal years: Revenue recognition. Its net sales predominantly reflect global sales of beverage alcohol consumer products.
BROWN FORMAN CORP sells these products under contracts with different types of customers, depending on the market.
§2 السيناريو الهبوطيEN
In a severe stress scenario combining domestic shipment stagnation with input cost inflation, annual revenue growth remains constrained near 0.16% while operating margins compress toward 22.48%. Under these adverse conditions, free cash flow generation narrows, debt servicing of $2,440,999,936 in total debt requires greater operating cash, and fair value falls to $20.26.
Indicates loss of pricing power and an inability to pass along barrel and grain costs to retail consumers.
الحالي:60.54% in FY2026
تنبيه إذاBelow 55.0%
02
US Net Sales
§3 الميزة التنافسيةEN
Narrow
Brown-Forman possesses a narrow economic moat grounded in two structural advantages: unmatched intangible brand assets and production cost advantages in barrel cooperage.
The flagship Jack Daniel's trademark enables premium price realization, maintaining gross margins of 60.54% in FY2026. Proprietary cooperages lower unit aging expenses, protecting returns above the 6.79% cost of capital.
الربح الاقتصادي
Brown-Forman generated an operating income of $1,001M on $3,928M in net revenue during FY2026. Its return on invested capital of 14.05% safely exceeds the computed WACC of 6.79%, yielding positive economic returns on capital.1,4
7/ 10
Narrow
Sources of advantage
01Intangible Assets — Unmatched brand equity in Jack Daniel's Tennessee Whiskey commands premium pricing and consumer loyalty, generating a 60.54% gross margin on $3,928,000,000 net sales in FY2026.Wide
02Cost Advantage — Ownership of proprietary barrel-making cooperages delivers manufacturing efficiencies and barrel wood supply security that smaller craft distilleries cannot replicate.Moderate
التهديدات المعروفة للميزة التنافسية
التهديد
الخطورة
الجدول الزمني
التخفيف
Consumer trade-down to lower-priced spirits during economic slowdowns.
medium
12-24 months
Offering multi-tiered product lines from value expressions to super-premium tequilas and ready-to-drink cans.
International trade barriers or retaliatory tariffs on American distilled spirits.
Apply a terminal P/E to the dated forward path, then discount that future share value back to the analysis date.
§5 الحساسية
معدل الخصم
النمو النهائي
1.5%
2.0%
2.5%
3.0%
3.5%
4.8%
$37.81
$41.67
$47.13
$55.47
$69.85
5.8%
$31.48
$33.60
$36.34
$40.01
$45.20
6.8%
$27.41
$28.72
$30.17
$32.35
$34.95
7.8%
$24.54
$25.42
$26.46
$27.71
$29.24
8.8%
$22.38
$23.01
$23.73
$24.57
$25.56
الصفوف: معدل الخصم (Ke للأرباح؛ WACC للتدفقات النقدية). الأعمدة: النمو النهائي.
تغير المدة (سنوات)
None of the valuation methods used to calculate Fair value relies on a separate assumption about how long the competitive advantage lasts.
مرجع الحساسية
The highlighted cell is Fair value when every assumption sits at its base level ($30.17). Each row and column shows what Fair value becomes when one assumption moves.
منحدر التدفق النقدي الحر
Free cash flow to the firm stays positive in the first projected year at $836.5M after modeled capex of $55.3M, with terminal value at 66.4% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
Wholesale shipments align with underlying consumer depletions over the medium term.
Operating margin remains steady near historical baseline performance.
International markets provide consistent volume diversification against domestic fluctuations.
Under the modal base case, wholesale distributor inventory levels normalize gradually while core brand equity sustains pricing discipline and high gross margins. Modest top-line growth combined with steady cash conversion supports our Fair value of $30.17, targeting $30.17 with an expected return of 16.3% over the forecast horizon.
Wholesale inventory destocking concludes faster than projected across domestic distribution networks.
International ready-to-drink premix formulations achieve higher retail penetration.
Super-premium tequila sales in Latin America accelerate above historical trend.
In the bull case, rapid global adoption of ready-to-drink premixes and accelerating super-premium tequila growth across international markets drive expansion toward $53.74. on expands , lifting the shares to $53.74 representing a return of 107.2%.
§7 شجرة قرارات الأرباحEN
تجاوز
Upgrade to Strong Buy; Consider expanding allocation as operational acceleration confirms inventory normalization and top-line momentum across international markets.
Management directed cash flow toward shareholder distributions in FY2026, paying $427,000,000 in dividends and repurchasing $400,000,000 of shares. Net debt was repaid by $244,000,000, maintaining balance sheet strength.
Generated $2,378,000,000 in gross profit on $3,928,000,000 revenue in FY2026 (60.54% gross margin), surpassing peer margins at ADM (6.87%) and HRL (15.74%).
أحدث إيرادات3.9 مليار US$معدل النمو السنوي المركب للإيرادات +3.1%
هامش التشغيل25.5%10 فترات مالية
أحدث تدفق نقدي حر893 مليون US$FY2026
صافي الدين2.1 مليار US$FY2026
تفصيل قائمة الدخلكيف يتحول حجم الأعمال إلى أرباح مُعلنة.
StockMarketAgent.AI
الإيرادات3.9 مليار US$تكلفة الإيرادات−1.6 مليار US$إجمالي الربح2.4 مليار US$المصروفات التشغيلية−1.4 مليار US$الدخل التشغيلي1 مليار US$البنود غير التشغيلية والضرائب−286 مليون US$صافي الدخل715 مليون US$
بيانات التاريخ المالي
الإيرادات
3,928,000,000 US$
تكلفة الإيرادات
1,550,000,000 US$
إجمالي الربح
2,378,000,000 US$
المصروفات التشغيلية
1,377,000,000 US$
الدخل التشغيلي
1,001,000,000 US$
البنود غير التشغيلية والضرائب
-286,000,000 US$
صافي الدخل
715,000,000 US$
لمحة عن الميزانية العموميةكيفية الاحتفاظ بالأصول المُبلغ عنها وتمويلها في الفترة المحددة.
StockMarketAgent.AI
تكوين الأصولمصادر التمويل
إجمالي الأصول7.9 مليار US$النقد308 مليون US$الأصول المتداولة4 مليار US$إجمالي الالتزامات3.9 مليار US$الالتزامات المتداولة1.2 مليار US$حقوق المساهمين4 مليار US$
بيانات تفصيل الميزانية العمومية
إجمالي الأصول
7,894,000,000 US$
النقد
308,000,000 US$
الأصول المتداولة
3,991,000,000 US$
إجمالي الالتزامات
3,874,000,000 US$
الالتزامات المتداولة
1,232,000,000 US$
حقوق المساهمين
4,020,000,000 US$
جسر التدفق النقديكيف تحول التدفق النقدي التشغيلي إلى تدفق نقدي حر في FY2026.
StockMarketAgent.AI
تسوية التدفق النقدي التشغيلي
صافي الدخل715 مليون US$الإهلاك والإطفاء+92 مليون US$التعويض القائم على الأسهم+32 مليون US$تعديلات تشغيلية أخرى+161 مليون US$التدفق النقدي التشغيلي1 مليار US$
تسوية النقد من بداية الفترة إلى نهايتها
النقد في بداية الفترة463 مليون US$التدفق النقدي التشغيلي+1 مليار US$التدفق النقدي الاستثماري−71 مليون US$التدفق النقدي التمويلي−1.1 مليار US$تأثير سعر الصرف+9 مليون US$النقد في نهاية الفترة327 مليون US$
1 مليار US$ − 107 مليون US$التدفق النقدي الحر 893 مليون US$
بيانات جسر التدفق النقدي
صافي الدخل
715,000,000 US$
التدفق النقدي التشغيلي الداخل
1,000,000,000 US$
الإهلاك والإطفاء
92,000,000 US$
التعويض القائم على الأسهم
32,000,000 US$
تعديلات تشغيلية أخرى
161,000,000 US$
التدفق النقدي التشغيلي
1,000,000,000 US$
النقد المتاح
1,472,000,000 US$
النقد في بداية الفترة
463,000,000 US$
تأثير سعر الصرف
9,000,000 US$
التدفق الاستثماري الخارج
71,000,000 US$
التدفق التمويلي الخارج
1,074,000,000 US$
إعادة شراء الأسهم
400,000,000 US$
أرباح الأسهم المدفوعة
427,000,000 US$
صافي سداد الدين
244,000,000 US$
أنشطة تمويلية أخرى
3,000,000 US$
النقد في نهاية الفترة
327,000,000 US$
التدفق النقدي الاستثماري
-71,000,000 US$
التدفق النقدي التمويلي
-1,074,000,000 US$
الإيرادات حسب المنطقةالحصة من إجمالي إيرادات 2026-04-30.
5.1 مليار US$إجمالي الإيرادات
الإيرادات حسب المنطقةالحصة
United States1.6 مليار US$32.4%−6.6% على أساس سنوي
أخرى1.3 مليار US$26.5%+2.4% على أساس سنوي
Developed International1.1 مليار US$21.5%+0.5% على أساس سنوي
Mexico319 مليون US$6.3%+19.5% على أساس سنوي
Germany248 مليون US$4.9%
Australia200 مليون US$3.9%+0.5% على أساس سنوي
أخرى210 مليون US$4.1%−21.6% على أساس سنوي
المصدر: SEC EDGAR · تاريخ الإيداع 2026-06-12 · SEC EDGAR
بيانات توزيع الإيرادات: الإيرادات حسب المنطقة
الإيرادات حسب المنطقة
الإيرادات
الحصة
على أساس سنوي
United States
1.6 مليار US$
32.4%
-6.6%
Other
1.3 مليار US$
26.5%
2.4%
Developed International
1.1 مليار US$
21.5%
0.5%
Mexico
319 مليون US$
6.3%
19.5%
Germany
248 مليون US$
4.9%
—
Australia
200 مليون US$
3.9%
0.5%
Travel Retail
177 مليون US$
3.5%
6.6%
Nonbrandedandbulk
33 مليون US$
0.6%
-67.6%
الإيرادات والأرباحكيف يتحول حجم الأعمال إلى أرباح مُعلنة.
النقد والدينالسيولة المتاحة مقارنة بإجمالي الاقتراض.
توليد النقدالتدفق النقدي التشغيلي مقارنة بالتدفق النقدي الحر.
Brown-Forman Corporation Class B (BF.B) trades at 15.1x forward earnings against a peer median of 14.8x. Its EV/EBITDA of 11.8x compares with a peer median of 14.0x. The comparison uses 4 peers: McCormick & Company Incorporated, Archer-Daniels-Midland Company, Hormel Foods Corporation and Colgate-Palmolive Company, as of 2026-09-20.
§10 الصناعة والدورةEN
مرحلة الدورة
Contraction
Capital expenditures dropped from $228M in FY2024 to $107M in FY2026, lowering the capex-to-depreciation ratio to 1.16x relative to the industry benchmark of 2.17x.4
دورة صعودية
Premiumization trends continue globally, driving consumer adoption of super-premium tequila and canned ready-to-drink whiskey premixes across developed and emerging retail channels.
دورة هبوطية
High inventory carrying costs induce wholesale distributors to permanently lower order volumes while consumer trade-down pressures premium spirits categories.
الاتجاهات طويلة الأمد
الاتجاه
التأثير
ملاحظة
Rapid Growth of Ready-to-Drink Premixes
positive
Pre-mixed cocktails expand brand reach into casual social gatherings and attract new consumers.
Premium Agave Spirits Expansion
positive
Rising global demand for 100% blue agave tequilas enhances product mix and net realization.
Wholesale Inventory Rationalization
negative
Elevated interest rates prompt beverage distributors to operate with lower safety stock buffers.
Downgrade rating and reduce position by half due to pricing power erosion.
US Net Sales
YoY contraction exceeding 5.0%
§12 وجهات نظر المستثمرينEN
Income and Dividend Investors
Buy
Shareholder distributions are backed by $893M in FY2026 free cash flow and a normalized capital cycle with capex-to-depreciation of 1.16x.3,4
Value and Long-Term Quality Investors
Buy
Buying at $25.94 on September 18, 2026 provides a 16.31% discount to Fair value ($30.17) for a high-moat consumer franchise with 60.54% gross margins.2,4
Short-Term Tactical Traders
Hold
Ongoing wholesale distributor inventory destocking in the US market ($1,649M in sales) may dampen immediate share price re-rating over the next quarter.5
§14 التوصية النهائيةEN
إجراء
شراء
We recommend buying shares of Brown-Forman at the report-date price of $25.94, representing a 16.31% discount to our central Fair value of $30.17.2
Exceptional gross margins of 60.54% and rebounding free cash flow ($893M in FY2026) provide robust safety while distributor destocking resolves.
§15ملاحظاتك
دوّن أطروحتك الاستثمارية وحجم مركزك وأسئلة المتابعة. تبقى على هذا الجهاز، ولا يراها أحد سواك.
ملاحظات خاصة
مرئية لك وحدك. محفوظة على هذا الجهاز.
لا أحرف
Sources
The records this analysis drew on, as they stood when it was run.
Macro and cost of capitalData as of 2026-09-20 · Published 2026-09-20 · cited for 2 figuresCited in الميزة التنافسية, التاريخ المالي
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Severe cost inflation in wood cooperage, grain, and glass combined with SG&A deleverage lowers operating margin by 300 bps
Elevated input costs for white oak barrels, grain, and glass packaging fail to be offset by price increases, driving operating margin down toward 22.48% from 25.48% in FY2026.4
FV impact
0%
Operating margin 3 points lower throughout
Trigger
Within 18 months
Terminal multiple de-rating across consumer defensive distillers reduces terminal multiple by 20%
Slowing spirits industry growth leads investors to de-rate mature distillers, reducing the terminal price-to-earnings multiple from 17.0x to 13.6x.
A 200 basis point rise in long-term interest rates and equity risk premiums pushes the discount rate up to 8.79%, reducing present value across all cash flow streams.
FV impact
-21.7%
Cost of capital 2 points higher
Trigger
Within 12 months
Signals deepening wholesale destocking or market share losses to competing spirits brands.
Limitation: Terminal value is 66.4% of this model's value, above the 60% level at which the methodology flags concentration; the value leans on the years beyond the explicit forecast.
Limitation: Terminal value is 79.9% of this model's value, above the 60% level at which the methodology flags concentration; the value leans on the years beyond the explicit forecast.