Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 3.5% dividend yield, Brown-Forman Corporation has a fair value of $14.02 based on NTM EPS (FY2026) of $1.75. The current PEG ratio is 4.78.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is unreliable for companies with declining earnings.
| EPS Growth RateForward | -0.4% |
| Dividend Yield | +3.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $1.75 |
| Fair Value | $14.02 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.84 | — | — |
| FY2026E | $1.75 | -4.7% | 17 |
| FY2027E | $1.70 | -3.1% | 17 |
| FY2028E | $1.73 | +1.6% | 7 |
| FY2029E | $1.93 | +11.7% | 12 |
| FY2030E | $1.81 | -6.3% | 16 |
5Y Forward EPS CAGR: -0.4%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $903.0M | $1.88 | — |
| FY2022 | $838.0M | $1.74 | -7.4% |
| FY2023 | $783.0M | $1.63 | -6.3% |
| FY2024 | $1.0B | $2.15 | +31.9% |
| FY2025 | $869.0M | $1.84 | -14.4% |
4Y Historical EPS CAGR: -0.5%