Latest Ratios: P/E Ratio 16.9x · EV/EBITDA 12.6x · ROE 17.8%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.1B | $12.0B | $16.5B | $22.8B | $31.3B | $32.4B | $36.7B | $29.9B | $25.7B | $27.1B | $18.5B |
| Enterprise Value | $13.9B | $13.9B | $18.8B | $25.5B | $33.8B | $33.8B | $38.1B | $31.8B | $27.9B | $29.5B | $20.4B |
| P/E Ratio → | 16.93 | 16.84 | 18.93 | 22.26 | 39.93 | 38.76 | 40.57 | 36.16 | 30.80 | 37.86 | 27.64 |
| P/S Ratio | 3.08 | 3.06 | 4.15 | 5.47 | 7.40 | 8.24 | 10.59 | 8.89 | 7.73 | 8.36 | 6.17 |
| P/B Ratio | 3.01 | 2.99 | 4.13 | 6.49 | 9.57 | 11.84 | 13.80 | 15.13 | 15.60 | 20.62 | 13.49 |
| P/FCF | 13.53 | 13.47 | 38.23 | 54.50 | 68.45 | 40.61 | 48.56 | 48.91 | 37.72 | 53.74 | 35.06 |
| P/OCF | 12.08 | 12.03 | 27.55 | 35.29 | 48.87 | 34.63 | 44.88 | 41.27 | 32.11 | 42.94 | 28.92 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.53 | 4.72 | 6.10 | 8.00 | 8.60 | 11.00 | 9.46 | 8.39 | 9.07 | 6.83 |
| EV / EBITDA | 12.56 | 12.51 | 14.97 | 20.66 | 28.02 | 26.35 | 30.63 | 27.30 | 22.92 | 26.49 | 19.14 |
| EV / EBIT | 12.56 | 12.51 | 15.60 | 17.89 | 30.55 | 28.27 | 32.77 | 29.16 | 24.67 | 28.19 | 20.61 |
| EV / FCF | — | 15.53 | 43.54 | 60.83 | 74.00 | 42.37 | 50.43 | 52.06 | 40.93 | 58.33 | 38.80 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.5% | 60.5% | 58.9% | 60.5% | 59.0% | 60.8% | 60.5% | 63.2% | 65.2% | 67.8% | 67.5% |
| Operating Margin | 28.2% | 28.2% | 29.4% | 27.5% | 26.7% | 30.6% | 33.7% | 32.4% | 34.4% | 32.3% | 33.7% |
| Net Profit Margin | 18.2% | 18.2% | 21.9% | 24.5% | 18.5% | 21.3% | 26.1% | 24.6% | 25.1% | 22.1% | 22.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.8% | 17.8% | 23.1% | 30.2% | 26.1% | 31.1% | 39.0% | 45.7% | 56.4% | 53.4% | 45.6% |
| ROA | 8.9% | 8.9% | 10.7% | 12.8% | 11.1% | 13.0% | 14.7% | 15.2% | 16.5% | 14.9% | 15.2% |
| ROIC | 13.7% | 13.7% | 14.1% | 14.4% | 17.0% | 22.0% | 22.0% | 21.2% | 23.0% | 22.6% | 24.7% |
| ROCE | 16.2% | 16.2% | 17.1% | 17.2% | 18.7% | 22.0% | 22.2% | 23.4% | 26.6% | 26.8% | 28.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.54 | 0.54 | 0.68 | 0.88 | 0.89 | 0.83 | 0.96 | 1.32 | 1.51 | 1.94 | 1.57 |
| Debt / EBITDA | 1.94 | 1.94 | 2.18 | 2.51 | 2.41 | 1.77 | 2.06 | 2.23 | 2.05 | 2.30 | 2.01 |
| Net Debt / Equity | — | 0.46 | 0.57 | 0.75 | 0.78 | 0.51 | 0.53 | 0.98 | 1.33 | 1.76 | 1.44 |
| Net Debt / EBITDA | 1.66 | 1.66 | 1.83 | 2.15 | 2.10 | 1.09 | 1.13 | 1.65 | 1.80 | 2.08 | 1.84 |
| Debt / FCF | — | 2.06 | 5.31 | 6.33 | 5.56 | 1.76 | 1.87 | 3.15 | 3.21 | 4.59 | 3.73 |
| Interest Coverage | 12.46 | 12.46 | 9.86 | 11.22 | 12.30 | 14.59 | 14.35 | 13.30 | 12.84 | 15.37 | 16.81 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.24 | 3.24 | 3.88 | 2.59 | 3.51 | 3.65 | 4.27 | 3.71 | 3.87 | 3.11 | 2.42 |
| Quick Ratio | 1.18 | 1.18 | 1.56 | 0.95 | 1.40 | 1.89 | 2.36 | 1.79 | 1.71 | 1.43 | 1.11 |
| Cash Ratio | 0.25 | 0.25 | 0.41 | 0.29 | 0.35 | 0.84 | 1.25 | 0.77 | 0.44 | 0.29 | 0.19 |
| Asset Turnover | — | 0.50 | 0.49 | 0.51 | 0.54 | 0.62 | 0.53 | 0.58 | 0.65 | 0.65 | 0.65 |
| Inventory Turnover | 0.61 | 0.61 | 0.65 | 0.65 | 0.76 | 0.85 | 0.78 | 0.73 | 0.76 | 0.76 | 0.77 |
| Days Sales Outstanding | — | 77.31 | 76.21 | 67.18 | 73.81 | 75.45 | 79.41 | 61.86 | 66.87 | 71.81 | 67.90 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.5% | 3.6% | 2.5% | 1.8% | 1.2% | 2.6% | 0.9% | 1.1% | 1.2% | 2.8% | 1.5% |
| Payout Ratio | 59.7% | 59.7% | 48.3% | 39.5% | 48.3% | 99.2% | 37.4% | 39.3% | 37.1% | 107.8% | 41.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 5.9% | 5.3% | 4.5% | 2.5% | 2.6% | 2.5% | 2.8% | 3.2% | 2.6% | 3.6% |
| FCF Yield | 7.4% | 7.4% | 2.6% | 1.8% | 1.5% | 2.5% | 2.1% | 2.0% | 2.7% | 1.9% | 2.9% |
| Buyback Yield | 3.3% | 3.3% | 0.0% | 1.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.8% | 0.0% | 3.0% |
| Total Shareholder Yield | 6.8% | 6.9% | 2.5% | 3.5% | 1.2% | 2.6% | 0.9% | 1.1% | 2.0% | 2.9% | 4.5% |
| Shares Outstanding | — | $467M | $473M | $477M | $481M | $481M | $481M | $480M | $482M | $484M | $488M |
Inventory-heavy capital intensity
According to recent market data, Brown-Forman trades at a forward P/E of 16.43, which suggests that investors are pricing in a degree of stability despite the company's recent revenue contraction and the broader normalization of spirits demand observed across the global consumer defensive sector.
The current valuation premium relative to peers like Diageo may reflect the market's confidence in the Jack Daniel's brand equity and the company's family-controlled governance. However, the lack of a clear PEG ratio indicates that the market is struggling to reconcile this premium with the current decelerating growth trajectory, warranting caution regarding potential multiple compression.
Based on reported financial statements, Brown-Forman's ROIC has trended toward the low single digits, reaching 2.6% in 2026Q4, which highlights the significant drag created by the massive, non-earning capital tied up in multi-year whiskey aging processes across the company's global production facilities.
The decline in ROIC from 4.6% in 2024Q4 suggests that the company is struggling to generate incremental returns on its invested capital as it expands its RTD portfolio. This trend warrants further investigation into whether the current capital allocation strategy is effectively balancing long-term brand maturation with the need for immediate shareholder value creation.
As evidenced by the company's reported figures, the cash conversion cycle has remained exceptionally long, peaking at 544 days in 2026Q4, which is primarily driven by the extensive days inventory outstanding required to support the maturation of the core premium whiskey portfolio.
The high DIO relative to industry peers is a structural reality of the business model rather than an operational failure, yet it creates a persistent liquidity burden. Investors should monitor whether the shift toward higher-velocity RTD products can meaningfully compress this cycle without compromising the premium brand positioning that supports the company's margins.
The P/E ratio is frequently misapplied to Brown-Forman because it fails to account for the significant non-cash depreciation and the massive, undervalued inventory of aging spirits that acts as a hidden balance sheet asset, effectively obscuring the company's true economic earning power and long-term margin of safety.
Analysts should instead focus on EV/EBITDA or cash-flow-based metrics, as these better capture the underlying operational performance by neutralizing the impact of LIFO accounting and the capital-intensive nature of the distillation cycle. Relying solely on P/E may lead to an underestimation of the company's resilience during periods of commodity-driven margin volatility.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BF-B stock.
Brown-Forman Corporation's current P/E ratio is 16.9x. The historical average is 25.1x. This places it at the 7th percentile of its historical range.
Brown-Forman Corporation's current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.7x.
Brown-Forman Corporation's return on equity (ROE) is 17.8%. The historical average is 30.6%.
Based on historical data, Brown-Forman Corporation is trading at a P/E of 16.9x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Brown-Forman Corporation's current dividend yield is 3.53% with a payout ratio of 59.7%.
Brown-Forman Corporation has 60.5% gross margin and 28.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Brown-Forman Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.