Brown–Forman

Methodology

Brown-Forman's premium spirits portfolio led by Jack Daniel's provides relatively stable earnings from consistent alcohol consumption patterns. The company's focus on American whiskey and super-premium brands creates pricing power and modest but reliable growth. This fair value calculation works well for Brown-Forman as a defensive consumer staples play, though changes in consumer preferences and international market dynamics can impact growth rates.

Methodology

Brown-Forman's PEG ratio typically ranges from 2.5-4.0, reflecting premium valuations for a spirits company with strong brands but modest growth. The company's family control and conservative management limit both risks and growth aggressiveness compared to more acquisitive peers. Compare to Diageo, Constellation, and other spirits companies to assess whether Brown-Forman's brand strength and premium positioning justify higher multiples despite slower growth.

Methodology

Brown-Forman's dividend yield (around 1.0-1.5%) is modest for a mature spirits company, reflecting the family's preference for balance sheet strength over high payouts. The company's consistent dividend growth and financial conservatism appeal to quality-focused investors. PEGY provides some additional context, though for Brown-Forman, brand health and international expansion matter more than dividend-adjusted metrics given the modest yield.