Is Brown-Forman Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Brown-Forman Corp. has moved from expensive to attractive, indicating a shift in perception towards the stock's value. The company is currently considered undervalued based on its valuation metrics, including a P/E ratio of 15, an EV to EBITDA of 13.51, and a Price to Book Value of 3.37. In comparison, peers such as Molson Coors Beverage Co. have a P/E of 9.80, while Boston Beer Co., Inc. has a P/E of 17.28, highlighting Brown-Forman's relative attractiveness in the market.
Despite the favorable valuation metrics, Brown-Forman has experienced significant declines in stock performance, with a year-to-date return of -27.65% compared to the S&P 500's 12.22%. This stark contrast suggests that while the stock may be undervalued based on its ratios, market sentiment has not yet aligned with its intrinsic value.