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

As of today, Brown-Forman Corp's current share price is $100.69. Brown-Forman Corp's E10 for the quarter that ended in Apr. 2015 was $0.00. Brown-Forman Corp's Shiller P/E Ratio for today is .

BF.B' s 10-Year Shiller P/E Ratio Range
Min: 15.72   Max: 39.88
Current: 39.53

15.72
39.88

During the past 13 years, Brown-Forman Corp's highest Shiller P/E Ratio was 39.88. The lowest was 15.72. And the median was 26.71.

BF.B's Shiller P/E Ratiois ranked lower than
80% of the 100 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 25.19 vs. BF.B: 39.53 )

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. 2015 was $0.669. 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 $0.00 for the trailing six years ended in Apr. 2015.


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
=100.69/0.00
=

* 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 Apr15 is calculated as:

For example, Brown-Forman Corp's adjusted earnings per share data for the three months ended in Apr. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2015*CPI of Current
=0.668/236.599*236.959
=0.669

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.959.

Brown-Forman Corp Quarterly Data

201301201304201307201310201401201404201407201410201501201504
per share eps 0.7300.5250.6600.9600.8200.6190.7000.9700.8700.668
CPI 230.280232.531233.596233.546233.916237.072238.250237.433233.707236.599
Adj_EPS 0.7510.5350.6700.9740.8310.6190.6960.9680.8820.669
201007201010201101201104201107201110201201201204201207201210
per share eps 0.5070.7000.6400.7570.5400.7300.6200.4860.6900.800
CPI 218.011218.711220.223224.906225.922226.421226.665230.085229.104231.317
Adj_EPS 0.5510.7580.6890.7980.5660.7640.6480.5010.7140.820
200907200910201001201004
per share eps 0.5400.6600.4870.330
CPI 215.351216.177216.687218.009
Adj_EPS 0.5940.7230.5330.359

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

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
ShillerPE 33.0326.1723.8819.1522.6522.9425.4929.7234.5333.39

Brown-Forman Corp Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ShillerPE 28.3029.7230.3628.9730.4134.5332.4833.9832.6333.39
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