Stock fact sheet · data as of
Brown-Forman Corporation (BF-A): fair value, margin of safety and Wheel Score
Consumer Defensive · Beverages - Wineries & Distilleries · United States · Defensive
Is BF-A undervalued?
At 29.13 (close of 16 Oct 2026), BF-A trades 21% over the GLS average fair value of 23.98. 3 of the 9 models land above the price and 6 below. A negative margin of safety costs Value points in the Wheel Score (4 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
The 9 models disagree widely: Lynch gives 6.15 while 10 Cap gives 49.17. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files BF-A under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for BF-A
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 36.56 | +26% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 17.49 | -40% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 25.33 | -13% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 6.15 | -79% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.92 | -73% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 49.17 | +69% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 41.80 | +43% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 13.60 | -53% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 17.80 | -39% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.2582 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 28.50 | -2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health BF-A scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.5 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 11.6%, ROE 17.8%, ROA 9.1% - with debt at 0.54 times equity and a free-cash-flow yield of 7.0%.
The dividend yield is 3.23% at a payout ratio of 59%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Whiskey 72%, Ready to Drink 17%, Tequila 6% (quarter Q1 FY2027).
Institutional ownership scores 1/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 11.6% |
|---|---|---|---|
| GLS Moat | 6.5 / 10 | ROE | 17.8% |
| Debt / equity | 0.54 | ROA | 9.1% |
| Free-cash-flow yield | 7.0% | Payout ratio | 59% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 39: No options
BF-A has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 148k shares a day on a market cap of $13.2B, with a beta of 0.31 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 4 / 25 | -21% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 10 / 15 | moat 6.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 13 / 20 | 148k shares/day, $13.2B cap, beta 0.31 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Dec 2026, 48 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Beverages - Wineries & Distilleries
The 12 companies below are the closest to Brown-Forman Corporation by market cap within the Beverages - Wineries & Distilleries industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BF-B Brown-Forman Corporation | 28.58 | 23.86 | -20% | 39No options | $13.2B |
| AGCC Agencia Comercial Spirits Ltd | 15.09 | - | - | 30No options | $344M |
| MGPI MGP Ingredients, Inc. | 15.40 | 17.20 | +10% | 45Weak | $330M |
| SNDL SNDL Inc. | 1.15 | 4.09 | +72% | 45Weak | $283M |
| CWGL Crimson Wine Group, Ltd. | 4.20 | 2.88 | -46% | 22No options | $86M |
| FCUL Food Culture Inc. | 0.5988 | - | - | 27No options | $27M |
| APHD Apogee 21 Holdings, Inc. | 1.27 | 5.95 | +79% | 37No options | $23M |
| EPSM Epsium Enterprise Limited Ordinary Shares | 1.05 | 0.8044 | -31% | 10No options | $14M |
| WVVIP Willamette Valley Vineyards, Inc. | 2.69 | 3,177.56 | +100% | 38No options | $10M |
| WVVI Willamette Valley Vineyards, Inc. | 2.10 | 3,177.81 | +100% | 39No options | $10M |
| RSAU Rooshine, Inc. | 0.2270 | - | - | 24No options | $5M |
| IBG Innovation Beverage Group Limited | 0.8474 | - | - | 17No options | $4M |
⚖ Compare BF-A with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about BF-A
Is BF-A undervalued right now?
No: at 29.13 the stock trades 21% above the GLS average fair value of 23.98 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of BF-A and what does it mean?
BF-A has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for BF-A?
23.98 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Brown-Forman Corporation report earnings next?
The next earnings report is due on 3 Dec 2026 (before the open), 48 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does BF-A have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on BF-A, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.