Value Sense
BF-B
Brown-Forman Corporation (BF-B)
Last Price$33.0(0.2%)
Market Cap$15.7B
WACC
6.5%
Cost of Equity
7.7%
Cost of Debt
0.8%
Debt to Equity
20.5%
Beta
0.8
Stock quality
6/10
Good
BF-B
is 5.8% overvalued
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BF-B WACC

Recent WACC calculation

as of Mar 03, 2025
Cost of Equity
% share of Total Capital
7.7%
83.0%
Risk-free rate
4.2%
Beta
0.8
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.8%
17.0%
Average Cost of Debt
1.0%
Effective Tax Rate
17.6%
WACC
6.5%

WACC dynamics

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BF-B Cost of Equity

Recent Cost of Equity calculation

as of Mar 03, 2025
Risk-free rate
4.2%
Beta
0.8
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
7.7%

Cost of Equity dynamics

BF-B vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Brown-Forman Corporation logo
Brown-Forman CorporationBF-B
6.5%
(1.2%)
31.1%
24.5%
Median Peer Set
6.2%
3.3%
0.0%
(3.1%)
Ambev S.A. logo
Ambev S.A.ABEV
11.8%
3.3%
3.3%
18.2%
LQR House Inc. logo
LQR House Inc.LQR
11.7%
86.4%
9,905.9%
(1,405.3%)
Constellation Brands, Inc. logo
Constellation Brands, Inc.STZ
8.3%
5.4%
N/A
17.3%
The Duckhorn Portfolio, Inc. logo
The Duckhorn Portfolio, Inc.NAPA
7.5%
0.6%
(25.0%)
13.8%
ATA Creativity Global logo
ATA Creativity GlobalAACG
6.2%
1.7%
(33.9%)
(15.2%)
MGP Ingredients, Inc. logo
MGP Ingredients, Inc.MGPI
5.3%
6.9%
(2.4%)
12.8%
Willamette Valley Vineyards, Inc. logo
Willamette Valley Vineyards, Inc.WVVI
4.3%
15.3%
400.0%
(3.1%)
Eastside Distilling, Inc. logo
Eastside Distilling, Inc.EAST
4.0%
(24.4%)
(67.1%)
(71.8%)
Vintage Wine Estates, Inc. logo
Vintage Wine Estates, Inc.VWE
1.7%
(3.6%)
28,471.4%
(66.7%)

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FAQ

What is Brown-Forman Corporation's discount rate as of Mar 03, 2025?

As of Mar 03, 2025, Brown-Forman Corporation's discount rate is 6.49%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Brown-Forman Corporation's capital structure and risk profile.

What is Brown-Forman Corporation's weighted average cost of capital (WACC)?

Brown-Forman Corporation's WACC as of Mar 03, 2025, is 6.49%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Brown-Forman Corporation's cost of equity?

Brown-Forman Corporation's cost of equity is 7.7%, as of Mar 03, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.