BROWN FORMAN CORP (BF-A)

Beverages

Latest Price

$26.61

TTM P/E

17.17

Normalized P/E

15.02

Div Yield

Book Value

8.65

P/B Ratio

3.08

Valuation metrics

EPS: $1.53

Book value / share: $8.50

Formula: √(22.5 × EPS × BVPS)

Graham Number

$17.11

36% downside

Norm. op. income: $1.1B (median of 7yr)

Tax rate: 20%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$14.53

45% downside

Base FCF: $457M (median of recent 5yr)

Growth: 4%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$10.99

59% downside

EPS: $1.53

Target P/E: 15×

Formula: EPS × P/E

P/E Fair Value

$22.95

14% downside