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Brown-Forman (Brown-Forman) PS Ratio

: 5.55 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Brown-Forman's share price is $49.34. Brown-Forman's Revenue per Share for the trailing twelve months (TTM) ended in Jan. 2024 was $8.89. Hence, Brown-Forman's PS Ratio for today is 5.55.

Good Sign:

Brown-Forman Corp stock PS Ratio (=5.53) is close to 10-year low of 5.52

The historical rank and industry rank for Brown-Forman's PS Ratio or its related term are showing as below:

BF.B' s PS Ratio Range Over the Past 10 Years
Min: 5.02   Med: 7.19   Max: 11.65
Current: 5.55

During the past 13 years, Brown-Forman's highest PS Ratio was 11.65. The lowest was 5.02. And the median was 7.19.

BF.B's PS Ratio is ranked worse than
85.31% of 211 companies
in the Beverages - Alcoholic industry
Industry Median: 1.75 vs BF.B: 5.55

Brown-Forman's Revenue per Sharefor the three months ended in Jan. 2024 was $2.25. Its Revenue per Share for the trailing twelve months (TTM) ended in Jan. 2024 was $8.89.

Warning Sign:

Brown-Forman Corp revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Brown-Forman was 2.30% per year. During the past 3 years, the average Revenue per Share Growth Rate was 7.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was 5.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 4.70% per year.

During the past 13 years, Brown-Forman's highest 3-Year average Revenue per Share Growth Rate was 14.90% per year. The lowest was -1.10% per year. And the median was 5.30% per year.

Back to Basics: PS Ratio


Brown-Forman PS Ratio Historical Data

The historical data trend for Brown-Forman's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brown-Forman Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.73 8.89 10.59 8.24 7.40

Brown-Forman Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.66 7.40 7.96 6.31 6.17

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Brown-Forman PS Ratio Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's PS Ratio distribution charts can be found below:

* The bar in red indicates where Brown-Forman's PS Ratio falls into.



Brown-Forman PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Brown-Forman's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=49.34/8.892
=5.55

Brown-Forman's Share Price of today is $49.34.
Brown-Forman's Revenue per Share for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $8.89.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Brown-Forman  (NYSE:BF.B) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Brown-Forman PS Ratio Related Terms

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Brown-Forman (Brown-Forman) Business Description

Traded in Other Exchanges
Address
850 Dixie Highway, Louisville, KY, USA, 40210
Brown-Forman is a U.S.-based manufacturer of premium distilled spirits that generates close to 70% of revenues in the whiskey category, under well-known Tennessee whiskey brand Jack Daniel's and bourbon brands Woodford Reserve and Old Forester. It also manufactures and distributes tequila, vodka, rum, gin, and premium wines. The company generates 47% of sales from its home market, while the bulk of international revenues come from Europe, Australia, and Latin America. The Brown family controls over 50% of the economic interests and a 67% voting power of the company.
Executives
Elizabeth M Brown director 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Elizabeth A Smith director 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Mark A. Clouse director C/O MONDELEZ INTERNATIONAL, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Jeremy J Shepherd officer: VP, Pres, USA & Canada 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Crystal L Peterson officer: SVP, Chief Inclusion Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Jan Singer director 2 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10016
Timothy M Nall officer: SVP CIO 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Leanne D Cunningham officer: SVP, Chief Fin Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Matias Bentel officer: SVP, Chief Brands Officer 850 DIXIE HWY, LOUISVILLE KY 40210
Kelli Nelson officer: SVP, Chief Accounting Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Mike J. Keyes officer: SVP, Chief Corporate Affairs 850 DIXIE HWY, LOUISVILLE KY 40210
Tracy L Skeans director 1441 GARDINER LANE, LOUISVILLE KY 40213
John V. Hayes officer: SVP, Chief Marketing Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Michael Andrew Masick officer: VP DIR CORP STRATEGY 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Kathleen M. Gutmann director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328

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