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

As of today, Brown-Forman Corp's current share price is $89.42. Brown-Forman Corp's E10 for the quarter that ended in Jan. 2015 was $2.69. Brown-Forman Corp's Shiller P/E Ratio for today is 33.24.

BF.B' s 10-Year Shiller P/E Ratio Range
Min: 15.82   Max: 37.88
Current: 33.48

15.82
37.88

During the past 13 years, Brown-Forman Corp's highest Shiller P/E Ratio was 37.88. The lowest was 15.82. And the median was 26.57.

BF.B's Shiller P/E Ratiois ranked higher than
78% of the 294 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 30.23 vs. BF.B: 33.48 )

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 Jan. 2015 was $0.869. 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 $2.69 for the trailing six years ended in Jan. 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
=89.42/2.69
=33.24

* 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 Jan. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=0.87/234.143*233.808
=0.869

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

Current CPI = 233.808.

Brown-Forman Corp Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps 0.8000.7300.5250.6600.9600.8200.6190.7000.9700.870
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433234.143
Adj_EPS 0.8090.7410.5280.6610.9610.8200.6100.6870.9550.869
201004201007201010201101201104201107201110201201201204201207
per share eps 0.3270.5070.7000.6400.7570.5400.7300.6200.4860.690
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS 0.3510.5440.7480.6790.7870.5590.7540.6400.4940.704
200904200907200910201001
per share eps 0.3550.5400.6600.487
CPI 213.240215.351216.177216.687
Adj_EPS 0.3890.5860.7140.525

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 26.7132.9226.0523.9719.2122.5223.0225.5829.8234.63

Brown-Forman Corp Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 26.6428.4129.8230.4529.0530.5034.6332.5734.3933.01
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