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Brown-Forman Corporation Class A (BF.A) — WACC Analysis

WACC Breakdown

Brown-Forman Corporation Class A (BF.A) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 8.1%, derived from a beta of 0.53 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.3%. The capital structure is 83.7% equity and 16.3% debt.

Interpretation

A WACC of 7.3% suggests that the market views Brown-Forman Corporation Class A as relatively low-risk, with a lower cost of financing.

Investors can compare BF.A's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.53 reflects the stock's volatility relative to the broader market.

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VALUATION

BF.A WACC: 7.34% for Brown-Forman Corporation Class A

Current inputs imply a 8.12% cost of equity and a 4.22% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Brown-Forman Corporation Class A Common Stock (BF.A) WACC Results
Weighted Average Cost of Capital
7.34%
Cost of Equity
8.12%
Risk-Free Rate5.22%
Beta0.53
Market Risk Premium4.23%
Cost of Debt
3.33%
Pre-Tax Cost of Debt4.22%
Tax Rate21.00%
Tax Shield0.89%
Capital Structure
Equity: 83.68%($12.52B)
Debt: 16.32%($2441.00M)
Equity Component
6.80%
83.68% × 8.12%
Debt Component
0.54%
16.32% × 3.33%

Brown-Forman Corporation Class A (BF.A) WACC in context

Brown-Forman Corporation Class A (BF.A) currently screens with an estimated WACC of 7.34%. That blends a 8.12% cost of equity, a 4.22% pre-tax cost of debt, and a 83.68% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What BF.A WACC implies

A 7.34% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates BF.A

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.53 and equity accounts for 83.68% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

BF.A WACC: 7.34% — Brown-Forman Corporation Class A Cost of Capital (October 2026) | DeepViews