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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 45.35 (-1.18% today). The market cap for Brown-Forman Corporation is 18545.43, 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 17.3, and a forward P/E of 23.4. Average volume for Brown-Forman Corporation is 1132.68 and so far today it is 774800.

Performance in the last year for Brown-Forman Corporation has been -13.19%. For EPS growth, Brown-Forman Corporation has seen a growth of 62.70%, and is looking to grow in the next year to 8.45%. More long term stats show that EPS growth has been 15.00% over the last five years and could be 5.00% for the next five years. Brown-Forman Corporation has seen sales growth quarter over quarter at -5.40%, with EPS growth quarter over quarter at -2.70%. The 20-day simple moving average is -5.19%, with the 200-day simple moving average coming to -5.62%.

Since the IPO date for Brown-Forman Corporation on the 9/7/1984, Brown-Forman Corporation has seen performance year to date to be -7.70%. With Brown-Forman Corporation trading at 45.35, the dividend yield is 1.50%, and the EPS is 2.62.

So could Brown-Forman Corporation, be undervalued? Well as said before P/E is 17.3. The PEG is 3.46, P/S is 6.07 and the P/B is at 13.42. The P/cash is 40.4, with P/free cash flow at *TBA.

Brown-Forman Corporation ability to deal with debt shows that the current ratio is 2.9, and the quick ratio is 1.5. This is with long term debt/equity at 1.47, and total debt/equity at 1.68.

In terms of margins, Brown-Forman Corporation has a gross margin of 69.00%, an operating margin of 49.80% and a profit margin of 34.60%.Payout ratio for Brown-Forman Corporation is 18.90%. Return on assets come to 24.00% with return on investment coming to 36.30%.

Insider ownership for Brown-Forman Corporation, is at 1.00% and institutional ownership comes to 48.70%. Outstanding shares are at 408.94. While shares float is 298.95. The float short is currently 3.05%, and short ratio is 8.04.

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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