Discounted Cash Flow

Brown Forman Corp.

BF.A · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $3.0b $669.0m $527.0m 22.3% $1.72
2018 $3.2b (8.5%) $717.0m (7.2%) $505.0m (-4.2%) 22.1% (-1.2%) $1.49 (-13.4%)
2019 $3.3b (2.3%) $835.0m (16.5%) $681.0m (34.9%) 25.1% (13.8%) $1.74 (16.8%)
2020 $3.4b (1.2%) $827.0m (-1.0%) $611.0m (-10.3%) 24.6% (-2.1%) $1.73 (-0.6%)
2021 $3.5b (2.9%) $903.0m (9.2%) $755.0m (23.6%) 26.1% (6.1%) $1.89 (9.2%)
2022 $3.9b (13.6%) $838.0m (-7.2%) $798.0m (5.7%) 21.3% (-18.3%) $1.75 (-7.4%)
2023 $4.2b (7.5%) $783.0m (-6.6%) $457.0m (-42.7%) 18.5% (-13.1%) $1.63 (-6.9%)
2024 $4.2b (-1.2%) $1.0b (30.8%) $419.0m (-8.3%) 24.5% (32.3%) $2.15 (31.9%)
2025 $4.0b (-4.9%) $869.0m (-15.1%) $431.0m (2.9%) 21.9% (-10.8%) $1.84 (-14.4%)
2026 $3.9b (-1.2%) $715.0m (-17.7%) $893.0m (107.2%) 18.2% (-16.7%) $1.53 (-16.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model