Intrinsic value of Brown-Forman Cl A - BF-A

Previous Close

$65.34

  Intrinsic Value

$36.44

stock screener

  Rating & Target

sell

-44%

Previous close

$65.34

 
Intrinsic value

$36.44

 
Up/down potential

-44%

 
Rating

sell

We calculate the intrinsic value of BF-A stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 25.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -3.08
  9.40
  8.96
  8.56
  8.21
  7.89
  7.60
  7.34
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
Revenue, $m
  2,994
  3,275
  3,569
  3,875
  4,193
  4,523
  4,867
  5,224
  5,595
  5,981
  6,382
  6,799
  7,233
  7,684
  8,154
  8,644
  9,155
  9,687
  10,243
  10,822
  11,428
  12,060
  12,721
  13,413
  14,136
  14,892
  15,684
  16,512
  17,380
  18,289
  19,242
Variable operating expenses, $m
 
  1,644
  1,784
  1,931
  2,083
  2,241
  2,406
  2,577
  2,755
  2,939
  3,131
  3,256
  3,463
  3,680
  3,905
  4,139
  4,384
  4,639
  4,905
  5,182
  5,472
  5,775
  6,092
  6,423
  6,769
  7,131
  7,510
  7,907
  8,323
  8,758
  9,214
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,005
  1,644
  1,784
  1,931
  2,083
  2,241
  2,406
  2,577
  2,755
  2,939
  3,131
  3,256
  3,463
  3,680
  3,905
  4,139
  4,384
  4,639
  4,905
  5,182
  5,472
  5,775
  6,092
  6,423
  6,769
  7,131
  7,510
  7,907
  8,323
  8,758
  9,214
Operating income, $m
  989
  1,632
  1,785
  1,944
  2,110
  2,282
  2,461
  2,647
  2,841
  3,042
  3,251
  3,543
  3,769
  4,005
  4,250
  4,505
  4,771
  5,048
  5,338
  5,640
  5,956
  6,285
  6,630
  6,990
  7,367
  7,761
  8,173
  8,605
  9,058
  9,531
  10,028
EBITDA, $m
  1,047
  1,754
  1,911
  2,075
  2,245
  2,422
  2,606
  2,798
  2,996
  3,203
  3,418
  3,641
  3,873
  4,115
  4,367
  4,629
  4,903
  5,188
  5,485
  5,796
  6,120
  6,459
  6,813
  7,183
  7,570
  7,975
  8,399
  8,843
  9,307
  9,794
  10,304
Interest expense (income), $m
  48
  69
  79
  90
  101
  112
  124
  136
  149
  162
  176
  191
  206
  221
  237
  254
  272
  290
  309
  329
  350
  372
  395
  418
  443
  469
  496
  525
  555
  586
  619
Earnings before tax, $m
  933
  1,563
  1,706
  1,854
  2,009
  2,170
  2,337
  2,511
  2,692
  2,879
  3,074
  3,353
  3,564
  3,783
  4,012
  4,251
  4,499
  4,758
  5,029
  5,311
  5,605
  5,913
  6,235
  6,572
  6,923
  7,292
  7,677
  8,081
  8,503
  8,946
  9,409
Tax expense, $m
  264
  422
  461
  501
  542
  586
  631
  678
  727
  777
  830
  905
  962
  1,022
  1,083
  1,148
  1,215
  1,285
  1,358
  1,434
  1,513
  1,597
  1,683
  1,774
  1,869
  1,969
  2,073
  2,182
  2,296
  2,415
  2,540
Net income, $m
  669
  1,141
  1,245
  1,354
  1,467
  1,584
  1,706
  1,833
  1,965
  2,102
  2,244
  2,447
  2,602
  2,762
  2,929
  3,103
  3,284
  3,473
  3,671
  3,877
  4,092
  4,317
  4,552
  4,797
  5,054
  5,323
  5,604
  5,899
  6,207
  6,530
  6,869

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  182
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,625
  4,860
  5,295
  5,749
  6,220
  6,711
  7,221
  7,751
  8,301
  8,874
  9,469
  10,087
  10,731
  11,401
  12,099
  12,825
  13,583
  14,373
  15,197
  16,057
  16,955
  17,894
  18,875
  19,900
  20,973
  22,095
  23,269
  24,499
  25,787
  27,135
  28,548
Adjusted assets (=assets-cash), $m
  4,443
  4,860
  5,295
  5,749
  6,220
  6,711
  7,221
  7,751
  8,301
  8,874
  9,469
  10,087
  10,731
  11,401
  12,099
  12,825
  13,583
  14,373
  15,197
  16,057
  16,955
  17,894
  18,875
  19,900
  20,973
  22,095
  23,269
  24,499
  25,787
  27,135
  28,548
Revenue / Adjusted assets
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
  0.674
Average production assets, $m
  1,289
  1,412
  1,538
  1,670
  1,807
  1,950
  2,098
  2,252
  2,412
  2,578
  2,751
  2,930
  3,117
  3,312
  3,515
  3,726
  3,946
  4,175
  4,415
  4,664
  4,925
  5,198
  5,483
  5,781
  6,092
  6,418
  6,760
  7,117
  7,491
  7,883
  8,293
Working capital, $m
  1,381
  1,638
  1,784
  1,937
  2,096
  2,262
  2,433
  2,612
  2,798
  2,990
  3,191
  3,399
  3,616
  3,842
  4,077
  4,322
  4,577
  4,844
  5,121
  5,411
  5,714
  6,030
  6,361
  6,706
  7,068
  7,446
  7,842
  8,256
  8,690
  9,145
  9,621
Total debt, $m
  2,149
  2,257
  2,558
  2,872
  3,199
  3,538
  3,891
  4,258
  4,639
  5,035
  5,446
  5,875
  6,320
  6,784
  7,266
  7,769
  8,293
  8,840
  9,410
  10,005
  10,627
  11,276
  11,955
  12,665
  13,407
  14,184
  14,996
  15,847
  16,738
  17,672
  18,649
Total liabilities, $m
  3,255
  3,363
  3,664
  3,978
  4,305
  4,644
  4,997
  5,364
  5,745
  6,141
  6,552
  6,981
  7,426
  7,890
  8,372
  8,875
  9,399
  9,946
  10,516
  11,111
  11,733
  12,382
  13,061
  13,771
  14,513
  15,290
  16,102
  16,953
  17,844
  18,778
  19,755
Total equity, $m
  1,370
  1,497
  1,631
  1,771
  1,916
  2,067
  2,224
  2,387
  2,557
  2,733
  2,916
  3,107
  3,305
  3,512
  3,726
  3,950
  4,183
  4,427
  4,681
  4,946
  5,222
  5,511
  5,813
  6,129
  6,460
  6,805
  7,167
  7,546
  7,942
  8,358
  8,793
Total liabilities and equity, $m
  4,625
  4,860
  5,295
  5,749
  6,221
  6,711
  7,221
  7,751
  8,302
  8,874
  9,468
  10,088
  10,731
  11,402
  12,098
  12,825
  13,582
  14,373
  15,197
  16,057
  16,955
  17,893
  18,874
  19,900
  20,973
  22,095
  23,269
  24,499
  25,786
  27,136
  28,548
Debt-to-equity ratio
  1.569
  1.510
  1.570
  1.620
  1.670
  1.710
  1.750
  1.780
  1.810
  1.840
  1.870
  1.890
  1.910
  1.930
  1.950
  1.970
  1.980
  2.000
  2.010
  2.020
  2.030
  2.050
  2.060
  2.070
  2.080
  2.080
  2.090
  2.100
  2.110
  2.110
  2.120
Adjusted equity ratio
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  669
  1,141
  1,245
  1,354
  1,467
  1,584
  1,706
  1,833
  1,965
  2,102
  2,244
  2,447
  2,602
  2,762
  2,929
  3,103
  3,284
  3,473
  3,671
  3,877
  4,092
  4,317
  4,552
  4,797
  5,054
  5,323
  5,604
  5,899
  6,207
  6,530
  6,869
Depreciation, amort., depletion, $m
  58
  122
  127
  131
  136
  140
  145
  150
  156
  161
  167
  98
  104
  110
  117
  124
  132
  139
  147
  155
  164
  173
  183
  193
  203
  214
  225
  237
  250
  263
  276
Funds from operations, $m
  545
  1,263
  1,372
  1,485
  1,602
  1,724
  1,851
  1,983
  2,121
  2,263
  2,411
  2,545
  2,705
  2,872
  3,046
  3,227
  3,416
  3,613
  3,818
  4,032
  4,256
  4,490
  4,734
  4,990
  5,257
  5,537
  5,830
  6,136
  6,457
  6,793
  7,145
Change in working capital, $m
  -94
  141
  147
  153
  159
  165
  172
  179
  186
  193
  201
  209
  217
  226
  235
  245
  255
  266
  278
  290
  303
  316
  331
  346
  361
  378
  396
  414
  434
  455
  476
Cash from operations, $m
  639
  1,123
  1,225
  1,332
  1,443
  1,559
  1,680
  1,805
  1,935
  2,070
  2,211
  2,337
  2,489
  2,647
  2,811
  2,982
  3,161
  3,346
  3,540
  3,742
  3,953
  4,174
  4,404
  4,644
  4,896
  5,159
  5,434
  5,722
  6,023
  6,339
  6,669
Maintenance CAPEX, $m
  0
  -43
  -47
  -51
  -56
  -60
  -65
  -70
  -75
  -80
  -86
  -92
  -98
  -104
  -110
  -117
  -124
  -132
  -139
  -147
  -155
  -164
  -173
  -183
  -193
  -203
  -214
  -225
  -237
  -250
  -263
New CAPEX, $m
  -115
  -123
  -126
  -132
  -137
  -143
  -148
  -154
  -160
  -166
  -173
  -180
  -187
  -195
  -203
  -211
  -220
  -229
  -239
  -250
  -261
  -273
  -285
  -298
  -312
  -326
  -341
  -357
  -374
  -392
  -410
Cash from investing activities, $m
  -422
  -166
  -173
  -183
  -193
  -203
  -213
  -224
  -235
  -246
  -259
  -272
  -285
  -299
  -313
  -328
  -344
  -361
  -378
  -397
  -416
  -437
  -458
  -481
  -505
  -529
  -555
  -582
  -611
  -642
  -673
Free cash flow, $m
  217
  957
  1,051
  1,149
  1,250
  1,356
  1,466
  1,581
  1,700
  1,824
  1,952
  2,065
  2,204
  2,348
  2,498
  2,654
  2,816
  2,985
  3,162
  3,345
  3,537
  3,737
  3,946
  4,164
  4,391
  4,630
  4,879
  5,139
  5,412
  5,697
  5,996
Issuance/(repayment) of debt, $m
  565
  290
  301
  314
  327
  339
  353
  367
  381
  396
  412
  428
  445
  464
  483
  503
  524
  547
  570
  595
  622
  649
  679
  710
  742
  777
  813
  851
  891
  933
  978
Issuance/(repurchase) of shares, $m
  -561
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -11
  290
  301
  314
  327
  339
  353
  367
  381
  396
  412
  428
  445
  464
  483
  503
  524
  547
  570
  595
  622
  649
  679
  710
  742
  777
  813
  851
  891
  933
  978
Total cash flow (excl. dividends), $m
  193
  1,247
  1,353
  1,463
  1,577
  1,696
  1,819
  1,948
  2,081
  2,220
  2,364
  2,493
  2,649
  2,812
  2,981
  3,157
  3,341
  3,532
  3,732
  3,941
  4,159
  4,386
  4,624
  4,873
  5,134
  5,406
  5,691
  5,990
  6,303
  6,630
  6,974
Retained Cash Flow (-), $m
  192
  -127
  -134
  -140
  -145
  -151
  -157
  -163
  -170
  -176
  -183
  -191
  -198
  -206
  -215
  -224
  -233
  -243
  -254
  -265
  -277
  -289
  -302
  -316
  -330
  -346
  -362
  -379
  -397
  -415
  -435
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,120
  1,219
  1,323
  1,432
  1,545
  1,662
  1,784
  1,911
  2,043
  2,181
  2,303
  2,451
  2,605
  2,766
  2,933
  3,107
  3,289
  3,478
  3,676
  3,882
  4,097
  4,322
  4,557
  4,803
  5,061
  5,330
  5,611
  5,906
  6,215
  6,538
Discount rate, %
 
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.51
  9.99
  10.49
  11.01
  11.57
  12.14
  12.75
  13.39
  14.06
  14.76
  15.50
  16.27
  17.09
  17.94
  18.84
  19.78
  20.77
  21.81
  22.90
  24.04
  25.25
  26.51
  27.83
  29.22
PV of cash for distribution, $m
 
  1,046
  1,055
  1,055
  1,044
  1,021
  988
  944
  892
  833
  767
  691
  620
  547
  476
  408
  343
  284
  231
  184
  143
  109
  82
  59
  42
  29
  20
  13
  8
  5
  3
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel's Tennessee Whiskey, Jack Daniel's RTDs, Jack Daniel's Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel's Tennessee Fire, Jack Daniel's Single Barrel Collection, Jack Daniel's Sinatra Select, Jack Daniel's Winter Jack, Jack Daniel's No. 27 Gold Tennessee Whiskey, Finlandia Vodkas, Finlandia RTDs, Korbel California Brandy, Woodford Reserve Kentucky Bourbons, el Jimador Tequilas, el Jimador New Mix RTDs, Herradura Tequilas, Canadian Mist Canadian Whisky, Sonoma-Cutrer California Wines, Early Times Kentucky Whisky and Bourbon, Chambord Liqueur, Old Forester Kentucky Bourbon, Antiguo Tequila, Pepe Lopez Tequila, Santa Dose Cachaca and Collingwood Canadian Whisky.

FINANCIAL RATIOS  of  Brown-Forman Cl A (BF-A)

Valuation Ratios
P/E Ratio 37.5
Price to Sales 8.4
Price to Book 18.3
Price to Tangible Book
Price to Cash Flow 39.3
Price to Free Cash Flow 47.9
Growth Rates
Sales Growth Rate -3.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.5%
Cap. Spend. - 3 Yr. Gr. Rate -2.3%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 123.3%
Total Debt to Equity 156.9%
Interest Coverage 20
Management Effectiveness
Return On Assets 16%
Ret/ On Assets - 3 Yr. Avg. 19.7%
Return On Total Capital 20.3%
Ret/ On T. Cap. - 3 Yr. Avg. 25.8%
Return On Equity 45.6%
Return On Equity - 3 Yr. Avg. 47.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 67.5%
Gross Margin - 3 Yr. Avg. 68.9%
EBITDA Margin 34.7%
EBITDA Margin - 3 Yr. Avg. 40.2%
Operating Margin 33%
Oper. Margin - 3 Yr. Avg. 38.5%
Pre-Tax Margin 31.2%
Pre-Tax Margin - 3 Yr. Avg. 37.1%
Net Profit Margin 22.3%
Net Profit Margin - 3 Yr. Avg. 26.2%
Effective Tax Rate 28.3%
Eff/ Tax Rate - 3 Yr. Avg. 29.5%
Payout Ratio 41%

BF-A stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BF-A stock intrinsic value calculation we used $2994 million for the last fiscal year's total revenue generated by Brown-Forman Cl A. The default revenue input number comes from 2017 income statement of Brown-Forman Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BF-A stock valuation model: a) initial revenue growth rate of 9.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.1%, whose default value for BF-A is calculated based on our internal credit rating of Brown-Forman Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Brown-Forman Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BF-A stock the variable cost ratio is equal to 50.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BF-A stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Brown-Forman Cl A.

Corporate tax rate of 27% is the nominal tax rate for Brown-Forman Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BF-A stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BF-A are equal to 43.1%.

Life of production assets of 33.8 years is the average useful life of capital assets used in Brown-Forman Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BF-A is equal to 50%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1370 million for Brown-Forman Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 382.723 million for Brown-Forman Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Brown-Forman Cl A at the current share price and the inputted number of shares is $25.0 billion.

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COMPANY NEWS

▶ These Were the Top Movers in the Consumer Sector Last Week   [Dec-11-17 02:30PM  Market Realist]
▶ Stocks Flashing Renewed Technical Strength: Brown Forman   [03:00AM  Investor's Business Daily]
▶ New Highs: Two Stocks Pose Question, Hold Or Cash In?   [04:16PM  Investor's Business Daily]
▶ These Hard Liquors Are Gaining Popularity Now As Tastes Shift   [04:07PM  Investor's Business Daily]
▶ Building a Circle of Competency - Part II   [10:55AM  GuruFocus.com]
▶ Brown-Forman posts 2Q profit   [07:55AM  Associated Press]
▶ Brown-Forman Increases Cash Dividend 8.2%   [Nov-16-17 02:04PM  Business Wire]
▶ Details emerge on Brown-Forman's $45M Louisville project   [Nov-13-17 05:10PM  American City Business Journals]
▶ Brown Forman Clears Key Benchmark, Hitting 80-Plus RS Rating   [Nov-01-17 03:00AM  Investor's Business Daily]
▶ How Diageo Makes Most of Its Money   [Oct-25-17 03:51PM  Motley Fool]
▶ Old Forester delays Main Street opening, announces new distillery leadership   [Oct-17-17 10:19AM  American City Business Journals]
▶ Brown-Forman, Sazerac alum takes another job in the industry   [Oct-12-17 10:58AM  American City Business Journals]
▶ Brown-Forman Names U.K. Country Manager   [09:39AM  Business Wire]
▶ Drink to the Bullish Charts of Brown-Forman   [Oct-10-17 02:12PM  TheStreet.com]
▶ Drink to the Bullish Charts of Brown-Forman.   [02:12PM  TheStreet.com]
▶ How Safe Is Brown-Forman's Dividend?   [Sep-26-17 08:17AM  Motley Fool]
▶ Top Losers in the Consumer Sector: September 1115, 2017   [Sep-18-17 12:59PM  Market Realist]
▶ Brown Forman Earns Relative Strength Rating Upgrade; Hits Key Benchmark   [Sep-08-17 03:00AM  Investor's Business Daily]
▶ Brown Forman Trying To Close In On Key Technical Benchmark   [03:00AM  Investor's Business Daily]
▶ Brown-Forman posts 1Q profit   [08:03PM  Associated Press]
▶ Company News For August 31, 2017   [10:07AM  Zacks]
▶ Brown-Forman: Spirits Are Still Rising   [10:50AM  Barrons.com]
▶ No Regrets, Jack Daniel's?   [10:42AM  Bloomberg]
▶ Consumer Sector: Pre-Earnings Coverage for This Week   [Aug-28-17 11:08AM  Market Realist]
Financial statements of BF-A
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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