Brown-Forman Corporation

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $890M normalized FCF base (near FY2026's actual $893M); 2% annual FCF growth years 1-5 (reflecting ongoing spirits-industry destocking and moderation trends); 4% growth years 6-10 (gradual recovery); 7% discount rate reflecting the company's low beta (0.33) and defensive consumer-staples profile; 2.5% terminal growth; $2.14B net debt; 458.86M diluted shares outstanding

Reasoning: Brown-Forman is currently in an industry-wide down-cycle (FY2026 EPS down 17%) but has a multi-decade record of brand strength, pricing power, and capital discipline (54 consecutive years of dividend increases), so a low discount rate reflecting its defensive risk profile is paired with a modest near-term growth assumption that only gradually recovers toward a normalized long-run rate