Brown-Forman Corp (BF-B) is slightly undervalued and MGP Ingredients Inc (MGPI) is undervalued.
Against our estimates of intrinsic value, MGPI trades at the wider discount: a margin of safety of +46%, against +7% for BF-B.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.3% (average of 3 methods) values the shares at $28.43; the price of $26.56 is 7% below that value, and 82% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Its through-the-cycle earnings (13.5% median margin), capitalised at 6.7% with no growth, values the shares at $25.05; the price of $13.50 is 46% below that value.
Leak Score 50/100 on 8 of 12 signals
| Metric | BF-B | MGPI |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $26.56 | $13.50 |
| Intrinsic value | $28.43 | $25.05 |
| Margin of safety | +7% | +46% |
| Leak Score | 59/100 (3/12) | 50/100 (8/12) |
| Market cap | $12.3B | $289M |
| Revenue growth, 5 years | 2.7% | 6.3% |
| Operating margin | 28.5% | 13.2% |
| Net margin | 18.3% | -48.1% |
| Return on equity | 18.1% | -33.6% |
| Debt to equity | 0.62 | 0.64 |
| P/E | 17.1x | — |
| Forward P/E | 15.5x | 6.9x |
| P/B | 3.1x | 0.5x |
| Dividend yield | 3.6% | 3.6% |