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

As of today, Brown-Forman Corp's current share price is $97.31. Brown-Forman Corp's E10 for the quarter that ended in Oct. 2015 was $2.35. Brown-Forman Corp's Shiller P/E Ratio for today is 41.41.

BF.B' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.93   Max: 47.35
Current: 41.9

18.93
47.35

During the past 13 years, Brown-Forman Corp's highest Shiller P/E Ratio was 47.35. The lowest was 18.93. And the median was 31.57.

BF.B's Shiller P/E Ratio is ranked lower than
82% of the 83 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 26.92 vs. BF.B: 41.90 )

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 Oct. 2015 was $0.970. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.35 for the trailing ten years ended in Oct. 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
=97.31/2.35
=41.41

* 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 Oct. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2015 (Change)*Current CPI (Oct. 2015)
=0.97/237.838*237.838
=0.970

Current CPI (Oct. 2015) = 237.838.

Brown-Forman Corp Quarterly Data

201307201310201401201404201407201410201501201504201507201510
per share eps 0.6600.9600.8200.6100.7000.9700.8700.6700.7500.970
CPI 233.596233.546233.916237.072238.250237.433233.707236.599238.654237.838
Adj_EPS 0.6720.9780.8340.6120.6990.9720.8850.6740.7470.970
201101201104201107201110201201201204201207201210201301201304
per share eps 0.6400.7530.5400.7300.6200.4800.6900.8000.7300.530
CPI 220.223224.906225.922226.421226.665230.085229.104231.317230.280232.531
Adj_EPS 0.6910.7960.5680.7670.6510.4960.7160.8230.7540.542
200807200810200901200904200907200910201001201004201007201010
per share eps 0.3870.6270.5400.3530.5400.6600.4870.3270.5070.700
CPI 219.964216.573211.143213.240215.351216.177216.687218.009218.011218.711
Adj_EPS 0.4180.6890.6080.3940.5960.7260.5350.3570.5530.761
200601200604200607200610200701200704200707200710200801200804
per share eps 0.5200.3380.4050.5330.4510.2890.4110.5550.5000.440
CPI 198.300201.500203.500201.800202.416206.686208.299208.936211.080214.823
Adj_EPS 0.6240.3990.4730.6280.5300.3330.4690.6320.5630.487

Add all the adjusted EPS together and divide 10 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 37.0630.0628.2823.1926.1227.0929.9433.8539.1137.96

Brown-Forman Corp Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
ShillerPE 34.6033.0434.7139.1136.7838.1137.3737.9647.3145.14
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