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Brown-Forman Corp (NYSE:BF.B)
Shiller P/E Ratio
35.80 (As of Today)

As of today, Brown-Forman Corp's current share price is $93.17. Brown-Forman Corp's E10 for the quarter that ended in Apr. 2014 was $2.60. Brown-Forman Corp's Shiller P/E Ratio for today is 35.80.

BF.B' s 10-Year Shiller P/E Ratio Range
Min: 15.72   Max: 37.88
Current: 35.8

15.72
37.88

During the past 13 years, Brown-Forman Corp's highest Shiller P/E Ratio was 37.88. The lowest was 15.72. And the median was 26.04.

BF.B's Shiller P/E Ratiois ranked higher than
63% of the 263 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 29.50 vs. BF.B: 35.80 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Brown-Forman Corp's adjusted earnings per share data for the three months ended in Apr. 2014 was $0.625. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $2.60 for the trailing six years ended in Apr. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Brown-Forman Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=93.17/2.60
=35.83

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Brown-Forman Corp's E10 for the fiscal year that ended in Apr14 is calculated as:

For example, Brown-Forman Corp's adjusted earnings per share data for the three months ended in Apr. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2014*CPI of Current
=0.619/237.072*239.229
=0.625

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 239.229.

Brown-Forman Corp Quarterly Data

201201201204201207201210201301201304201307201310201401201404
per share eps 0.6200.4860.6900.8000.7300.5250.6600.9600.8200.619
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.6540.5050.7200.8270.7580.5400.6760.9830.8390.625
200907200910201001201004201007201010201101201104201107201110
per share eps 0.5400.6600.4870.3270.5070.7000.6400.7570.5400.730
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.6000.7300.5380.3590.5560.7660.6950.8050.5720.771
200807200810200901200904
per share eps 0.3870.6270.5400.355
CPI 219.964216.573211.143213.240
Adj_EPS 0.4210.6930.6120.398

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Brown-Forman Corp Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ShillerPE 26.7633.0026.1323.8519.1222.6322.9325.4829.7334.22

Brown-Forman Corp Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ShillerPE 24.5825.4826.9426.5528.3129.7330.3728.9930.4334.22
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