Is Brown-Forman Corp. overvalued or undervalued?

As of 9 April 2025, the valuation grade for Brown-Forman Corp. has moved from expensive to fair, indicating a reassessment of its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 13.51, and a dividend yield of 13.66%.
In comparison to peers, Constellation Brands, Inc. is considered risky with a P/E of 10.09 and an EV to EBITDA of 11.16, suggesting that Brown-Forman is priced more favorably relative to its competitor. Despite recent stock performance lagging behind the S&P 500, with a 1-year return of -39.27% compared to the index's 10.26%, the current valuation metrics suggest that Brown-Forman is positioned reasonably within its sector.