The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $599 M
Debt : $2,860 M
EBITDA : $1,260 M
Net Debt (Debt - Cash): $2,261 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer Defensive
Industry: Beverages - Wineries & Distilleries
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.46
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $494 M
Average Revenue: $3,007 M
Free Cash Flow to Revenue : 16 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-04-30): $4,178 M
Revenue 4 Years Ago (2020-04-30): $3,363 M
Revenue Growth: 5%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-04-30): $477 M
Share Count 5 Years Ago (2020-04-30): $480 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $1.84
Dividend Per Share (DPS): $1
Payout Ratio: 48%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 34%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $34
52-Week Low: $30
Threshold Price (15% Above 52-Week Low): $35
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $16,158 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 31 points to above Brown-Forman Corporation (BF-B) stock.
Twenty Years Avg PE 40, Fair Value PE 15, Industry Based PE is 18 and Growth based PE is 15. Based on these all values average assigned is 22.00.
Value-Trades has assined P/E value 22.00. Since current year earning per share is $1.84.
The fair value of Brown-Forman Corporation (BF-B) stock should be (22.00 x $1.84) = $40.48
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