Brown-Forman Corporation

AI-generated fair value estimate for this company.

Method: 10-year multi-stage FCF DCF: base normalized FCF of $550M (4-year average of FY2023-FY2026 free cash flow of $457M, $419M, $431M, and $893M, smoothing the FY2026 working-capital/capex-driven spike), grown 3%/year for 5 years then 4%/year for 5 years reflecting Brown-Forman's own tempered FY2027 outlook after a soft FY2026, 7.5% WACC, 2.5% terminal growth, less $2.3B net debt, divided by 458.86M total shares outstanding

Reasoning: Brown-Forman is a mature, dividend-paying consumer staples company with decades of stable, predictable cash generation, making a standard multi-stage DCF on normalized free cash flow the most appropriate method