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Brown-Forman Corporation (BF-B) vs Berkshire Hathaway Inc. (BRK-B): Which Is the Better Buy in 2026?

As of 2026-06-19, BF-B is overvalued at $27, with a DCF intrinsic value of $19 and a margin of safety of -41%. BRK-B is undervalued at $489, with an intrinsic value of $644 and a margin of safety of 24%. Of the two, BRK-B has the wider margin of safety.

BF-B
Brown-Forman Corporation
$26.64
VS
BRK-B
Berkshire Hathaway Inc.
$489.46

Rewards

BF-B
  • ★Brown-Forman Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 60.5% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Brown-Forman Corporation scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
BRK-B
  • ★Each dollar of retained earnings has created $3.95 of earning power — management is an exceptional capital allocator.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.

Risks

BF-B
  • ⚠FCF yield of 6.1% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 4.27 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
BRK-B
  • ⚠FCF yield of 5.8% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 10.06 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

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BF-B
BRK-B
Valuation
$739.63M
Free Cash Flow
$61.23B
6.05%
FCF Yield
5.80%
17.41
Trailing P/E
14.56
15.60
Forward P/E
22.79
Quality & Moat
10.88%
ROIC
4.96%
17.85%
ROE
10.50%
60.54%
Gross Margin
27.78%
4.27
PEG Ratio
10.06
Balance Sheet Safety
0.57
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
1.94
Net Debt / EBITDA
-2.28
3.46%
Dividend Yield
0.00%
BF-B: 6Ties: 2BRK-B: 4
BF-BBRK-B

Historical Fundamentals

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BF-B

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

BRK-B

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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BF-B
$-11.16
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.36B
Δ Market Cap
$-15.15B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
BRK-B
$1.66
created per $1 retained over 3 years
Value Creator
Σ Retained
$252.19B
Δ Market Cap
+$417.89B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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BF-B
41.4% Overvalued
Price is 41.4% above estimated fair value
Current Price: $26.64
Fair Value: $18.84
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
24.0% Margin of Safety
Price is 24.0% below estimated fair value
Current Price: $489.46
Fair Value: $643.73
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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BF-B

What growth rate is the market pricing in at $27?

+7.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +7.5%

The market implies +7.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +7.5%, reflecting heavy growth investment.

BRK-B

What growth rate is the market pricing in at $489?

+0.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.6%

The market implies +0.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +1.6%, reflecting heavy growth investment.

Economic Moat Score

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BF-B
87/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
BRK-B
40/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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BF-B
-2.64
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
BRK-B
-2.41
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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BF-B
Insiders 2.9%Institutions 71.9%Retail & Other 25.1%
No. of Institutional Holders827
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
BRK-B
Insiders 0.3%Institutions 67.3%Retail & Other 32.4%
No. of Institutional Holders5,905
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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BF-B
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
BRK-B
1
Buys (3M)
1
Buys (12M)
Total value (12M): $250,545
O'SULLIVAN MICHAEL J
General Counsel
$250,545
@ $467.43 · 2026-05-06
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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BF-B
0
Sells (3M)
2
Sells (12M)
Total value (12M): $881,206
WHITING LAWSON E
Chief Executive Officer
$148,335
@ $31.00 · 2025-12-04
WHITING LAWSON E
Chief Executive Officer
$732,871
@ $31.00 · 2025-07-23
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
BRK-B
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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BF-B
FearGreed
😐Neutral(45/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
BRK-B
FearGreed
😏Greed(65/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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BF-B
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (45)
BRK-B
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (65)
View BF-B Full AnalysisView BRK-B Full Analysis

Frequently Asked Questions: BF-B vs BRK-B

Is Brown-Forman Corporation or Berkshire Hathaway Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, BRK-B trades at a 24.0% margin of safety (intrinsic value $644 vs. price $489), compared to BF-B's -41.4% margin of safety (intrinsic $19 vs. $27).

Which stock has a wider economic moat, Brown-Forman Corporation or Berkshire Hathaway Inc.?▼

BF-B scores 87/100 (Wide moat), while BRK-B scores 40/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Berkshire Hathaway Inc. in financial distress?▼

BRK-B's Altman Z-Score of 2.5 places it in the Grey zone, signaling elevated bankruptcy risk. BF-B scores 4.2 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Brown-Forman Corporation or Berkshire Hathaway Inc.?▼

Brown-Forman Corporation (BF-B) generates a 6.1% free cash flow yield, compared to Berkshire Hathaway Inc.'s 5.8%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Brown-Forman Corporation or Berkshire Hathaway Inc.?▼

BF-B earns 10.9% ROIC versus BRK-B's 5.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.