BF.B - Embedded Expectations Analysis - 2020 08 25
Brown-Forman Corporation (BF.B:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 45.5x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their position in the spirits industry, Global Travel Retail growth, and liquiditySpecifically, management may lack confidence in their ability to improve Global Travel Retail growth, sustain current liquidity levels, and improve overall sales. Moreover, they may be exaggerating the health of the spirits industry in the U.S. and their position in the said industry, particularly Jack Daniel's. They may also have concerns about the ability of their new brands to surpass big brands, the efficiency turnover of their Craft brands, and the performance of Fords Gin. Furthermore, they may lack confidence in their ability to grow their business, develop a premium portfolio around the globe, and maintain consumers' trust in their brands
Brown-Forman primarily manufactures, bottles, imports, exports, markets, and sells a range of alcoholic beverage brands. Co.'s principal brands include, among other, Jack Daniel's Tennessee Whiskey; Jack Daniel's Tennessee Honey; Jack Daniel's RTDs; Gentleman Jack Rare Tennessee Whiskey; Jack Daniel's Tennessee Fire; Jack Daniel's Single Barrel Collection; Jack Daniel's Winter Jack; Jack Daniel's Sinatra Select; Jack Daniel's No. 27 Gold Tennessee Whiskey; Jack Daniel's Tennessee Rye; Korbel California Champagnes; Korbel California Brandy; Woodford Reserve Kentucky Bourbon; Woodford Reserve Double Oaked; Woodford Reserve Kentucky Rye Whiskey; Finlandia Vodkas; and Slane Irish Whiskey.
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