Brown-Forman Fair Value
BF
The fair market value of BF.B stock is 78.61 USD. Relative to the market price of 47.76 USD Brown-Forman Corp is undervalued by 64.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Brown-Forman Valuation
Current BF.B share ticker price is 47.76 USD.
The fair value level of 78.61 USD can be considered as an effective entry point for long-term investors to start investing in BF.B stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 65% lower its fair value
Current price is 34% lower its minimum value
Current price is 88% lower its maximum value
Market price:
BF.B stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Brown-Forman Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
43.27
2
Median P/E over 5 years
37.84
3
Minimum P/E over 5 years
30.89
4
Earning per share (last 12 months)
2.08 USD
Maximum value
1
x
4
=
89.9 USD
Fair value
2
x
4
=
78.61 USD
Minimum value
3
x
4
=
64.16 USD
Brown-Forman Corp price metrics
-6.3
Annual return (geometric mean)
27.3
Risk (standard deviation) of returns
β
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Beta (volatility compared to market)