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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 99.38 (0.91% today). The market cap for Brown-Forman Corporation is 19961.9, 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 18.7, and a forward P/E of 25.28. Average volume for Brown-Forman Corporation is 618.07 and so far today it is 115122.

Performance in the last year for Brown-Forman Corporation has been -3.12%. For EPS growth, Brown-Forman Corporation has seen a growth of 62.70%, and is looking to grow in the next year to 9.01%. 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 2.09%, with the 200-day simple moving average coming to 0.80%.

Since the IPO date for Brown-Forman Corporation on the 9/7/1984, Brown-Forman Corporation has seen performance year to date to be -0.11%. With Brown-Forman Corporation trading at 99.38, the dividend yield is 1.42%, and the EPS is 5.27.

So could Brown-Forman Corporation, be undervalued? Well as said before P/E is 18.7. The PEG is 3.9, P/S is 6.46 and the P/B is at 12.56. The P/cash is 75.9, with P/free cash flow at 134.88.

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 49.60%. Outstanding shares are at 202.7. While shares float is 149.68. The float short is currently 3.23%, and short ratio is 7.82.

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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Mark Hines

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