AlphaMadera's AlphaVal page classifies Brown-Forman Corporation as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag BF-B as undervalued, fairly valued, or overvalued.

What is Brown-Forman Corporation's fair value?

Fair value for BF-B comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value BF-B?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. BF-B was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from BF-B's most recent reported fundamentals.

BF-B - Brown-Forman Corporation

Price: -- -- | CONSENSUS: Hold DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild

Trading 10.1% below fair value

Current Price $28.88

Bear Case $27.54 4.6% downside ($27.54 - $28.88) / $28.88 = -4.6% $1.53 × 18x P/E

Fair Value $32.13 11.3% upside ($32.13 - $28.88) / $28.88 = 11.3% $1.53 × 21x P/E

Bull Case $36.72 27.1% upside ($36.72 - $28.88) / $28.88 = 27.1% $1.53 × 24x P/E

Adjust Assumptions

P/E Multiple

21.0x

Adjusted EPS

1.53$

Key Value Driver

Normalized P/E multiple (21x base case)

Terminal Value % of EV

Implied Market Multiple 18.9x

Market is pricing in (growth)

Plain-Language Summary

Applying a 21x P/E to adjusted EPS of $1.53, the base-case value is $32.13 per share.

Warnings

Key Risks

Growth DCF inappropriate — terminal value assumptions dominate
EV/EBITDA misleading for regulated businesses where capex is mandated
Regulatory risk is a fat tail not visible in normal multiples