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Brown-Forman Corporation (NYSE: BF-B) – Is this large market cap stock undervalued?

Brown-Forman Corporation (NYSE: BF-B), is firmly in the large market cap category with market cap of 18433.86. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Brown-Forman Corporation is 46.66 (with a change from open of 0.37%), this in conjunction with a target price of . Volume today has so far reached 536766, with an average volume of about 1166.25. The GAP for this stock, is 0.82%.

The P/E ratio is 17.59, bringing the forward P/E to a value of 23.78. The current EPS for Brown-Forman Corporation, is 2.62, with a EPS growth for this year coming to a value of 62.70%. Performance has been interesting with performance year to date coming to -6.15%.

Looking further into the growth statistics for Brown-Forman Corporation, EPS is looking like it will grow 8.51% in the next year. Looking even further it is projected to be 5.00%. Quarter over quarter is -2.70% for EPS growth and for sales growth quarter over quarter it is -5.40%. Looking at past EPS growth statistics we see that for the past five years it has been 15.00%. Sales growth for the past five years has in fact been 3.60%.

Looking at the ownership, we see that the insider ownership is at 1.20% and institutional ownership is 48.90%. Shares outstanding is 399.78, while shares float is at a value of 299.36. Float short for Brown-Forman Corporation is 3.12% and the short ratio is 8.02.

In terms of debt, long term debt/equity is 1.47, while the total debt/equity comes to 1.68. The ability to meet these debts, means that the current ratio is 2.9, and the quick ratio is 1.5. The most recent gross margin is 69.00% and their operating margin is 49.80%. The profit margin is 34.60%.

Brown-Forman Corporation has seen returns on assets of 24.00%, and on investment, 36.30%. Return on equity is 74.00%. Price/Earnings to growth ratio is 3.52. Price/Sales ratio is at a value of 6.04, with Price/book ratio coming to 13.64 and Price/cash is 40.16, and finally Price/Free cash Flow is .

The simple moving averages are -4.07% and -3.59% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -13.31% and the 52 week low is 4.74%.

Brown-Forman Corporation has a dividend yield of 1.47%, with a current price of 46.66. The ability to pay this means the payout ratio is 18.90%. This is in an industry, Beverages – Wineries & Distillers, with equally high dividends from other companies in this sector, which it is Consumer Goods. Brown-Forman Corporation is based in USA.

Performance in the Beverages – Wineries & Distillers industry means that Brown-Forman Corporation has seen performance for the past week of 1.16%, with performance for the month coming to -7.22%. Looking at the data for the quarter it is at a value of -4.28%, and for the half year the performance is -3.51%. Volatility for this week is 2.09% and for the month this is 1.95%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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