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Is this Large Market Cap Stock target price reasonable for Brown-Forman Corporation (NYSE:BF-B)?

The company in question is, Brown-Forman Corporation (NYSE:BF-B) currently with a stock price of 99.43 (-0.30% today). The market cap for Brown-Forman Corporation is 20274.11, and is in the sector Consumer Goods, and Beverages – Wineries & Distillers industry. The target price for Brown-Forman Corporation is *TBA. Currently Brown-Forman Corporation is trading with a P/E of 18.94, and a forward P/E of 25.62. Average volume for Brown-Forman Corporation is 571.58 and so far today it is 175630.

Performance in the last year for Brown-Forman Corporation has been -6.55%. For EPS growth, Brown-Forman Corporation has seen a growth of 62.70%, and is looking to grow in the next year to 8.99%. More long term stats show that EPS growth has been 15.00% over the last five years and could be 4.80% for the next five years. Brown-Forman Corporation has seen sales growth quarter over quarter at -1.40%, with EPS growth quarter over quarter at 290.20%. The 20-day simple moving average is 1.66%, with the 200-day simple moving average coming to 1.59%.

Since the IPO date for Brown-Forman Corporation on the 9/7/1984, Brown-Forman Corporation has seen performance year to date to be 1.16%. With Brown-Forman Corporation trading at 99.43, the dividend yield is 0.68%, and the EPS is 5.27.

So could Brown-Forman Corporation, be undervalued? Well as said before P/E is 18.94. The PEG is 3.95, P/S is 6.56 and the P/B is at 12.72. The P/cash is 77.09, with P/free cash flow at 136.99.

Brown-Forman Corporation ability to deal with debt shows that the current ratio is 2.8, and the quick ratio is 1.5. This is with long term debt/equity at 0.79, and total debt/equity at 0.96.

In terms of margins, Brown-Forman Corporation has a gross margin of 69.40%, an operating margin of 49.60% and a profit margin of 34.60%.Payout ratio for Brown-Forman Corporation is 24.70%. Return on assets come to 24.90% with return on investment coming to 36.30%.

Insider ownership for Brown-Forman Corporation, is at 1.20% and institutional ownership comes to 49.20%. Outstanding shares are at 203.29. While shares float is 149.68. The float short is currently 3.30%, and short ratio is 8.65.

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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Tony Dabbs

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