# Brown Forman Corporation (BF-A) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Defensive. Price $27.13, market value $12.4 billion.

## Valuation
- **P/E (trailing): 17.5×** (5-yr avg 25.4×, 3-yr avg 18.9×). Brown Forman Corporation trades at 17.5× trailing earnings, well below its own five-year average of 25.4×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×.
- **Price / sales: 3.2×**. Each dollar of revenue is priced at 3.2×.
- **Price / book: 3.1×**. The shares trade at 3.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.4×**. Enterprise value is 13.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 7.4%** (5-yr avg 3.3%). Free cash flow equals 7.4% of the market value, above its five-year average of 3.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.7%**. The inverse of the P/E: 5.7% of the price is earned each year.

## Profitability
- **Gross margin: 60.7%**. Brown Forman Corporation keeps 60.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 25.4%**. 25.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 18.2%**. 18.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.8%**. 17.8% on shareholders' equity is solid.
- **Return on invested capital: 13.0%**. Return on all capital, debt included, is 13.0%.
- **Return on assets: 9.1%**. Each dollar of assets produces 9.1% of profit.

## Growth
- **Revenue growth (1 yr): -1.2%** (3-yr -2.4%/yr, 5-yr 2.6%/yr). Revenue fell 1.2% over the last year, against 2.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -16.8%** (3-yr -2.1%/yr, 5-yr -4.0%/yr). Earnings per share fell 16.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 25.0%/yr**. Free cash flow has compounded at 25.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.61**. Debt is 0.61 times equity, moderate leverage.
- **Net debt / EBITDA: 2.0×**. It would take 2.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 9.6×**. Operating profit covers interest 9.6× over, a safe margin.
- **Current ratio: 3.24** (quick 3.24). Current assets cover the next year's liabilities 3.24 times.
- **Altman Z-score: 3.98**. A Z-score of 3.98 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.41%** ($0.92 per share, trailing). Brown Forman Corporation yields 3.41%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 60%** (46% of free cash flow). 60% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Dividend growth (5 yr): 5.4%/yr** (1-yr 3.5%). The dividend has grown 5.4% a year over five years.

## Price and momentum
- **Total return (1 yr): -2.3%** (YTD 4.9%, 3-mo 2.5%). The shares are down 2.3% over twelve months including dividends.
- **From 52-week high: -12.9%** (17.9% above the low). Trading 13% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 42**. An RSI of 42 is neutral.
- **Beta (1 yr): 0.07** (volatility 37%). Beta of 0.07 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BF-A · Page: https://foliofundamentals.com/stocks/bf-a

Not investment advice.