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

As of today, Brown-Forman Corp's current share price is $99.76. Brown-Forman Corp's E10 for the quarter that ended in Jan. 2016 was $2.41. Brown-Forman Corp's Shiller P/E Ratio for today is 41.39.

BF.B' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.8   Max: 47.54
Current: 41.26

18.8
47.54

During the past 13 years, Brown-Forman Corp's highest Shiller P/E Ratio was 47.54. The lowest was 18.80. And the median was 31.54.

BF.B's Shiller P/E Ratio is ranked lower than
65% of the 51 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 30.19 vs. BF.B: 41.26 )

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. 2016 was $0.940. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.41 for the trailing ten years ended in Jan. 2016.


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
=99.76/2.41
=41.39

* 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 Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=0.94/236.916*236.916
=0.940

Current CPI (Jan. 2016) = 236.916.

Brown-Forman Corp Quarterly Data

201401201404201407201410201501201504201507201510201601201604
per share eps 0.8200.6100.7000.9700.8700.6700.7500.9700.9402.600
CPI 233.916237.072238.250237.433233.707236.599238.654237.838236.916239.261
Adj_EPS 0.8310.6100.6960.9680.8820.6710.7450.9660.9402.575
201107201110201201201204201207201210201301201304201307201310
per share eps 0.5400.7300.6200.4800.6900.8000.7300.5300.6600.960
CPI 225.922226.421226.665230.085229.104231.317230.280232.531233.596233.546
Adj_EPS 0.5660.7640.6480.4940.7140.8190.7510.5400.6690.974
200901200904200907200910201001201004201007201010201101201104
per share eps 0.5400.3530.5400.6600.4870.3270.5070.7000.6400.753
CPI 211.143213.240215.351216.177216.687218.009218.011218.711220.223224.906
Adj_EPS 0.6060.3920.5940.7230.5320.3550.5510.7580.6890.793
200607200610200701200704200707200710200801200804200807200810
per share eps 0.4050.5330.4510.2890.4110.5550.5000.4400.3870.627
CPI 203.500201.800202.416206.686208.299208.936211.080214.823219.964216.573
Adj_EPS 0.4720.6260.5280.3310.4670.6290.5610.4850.4170.686

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

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ShillerPE 30.0528.3023.1926.1327.1229.6933.9038.8037.6536.58

Brown-Forman Corp Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ShillerPE 34.7538.8036.8538.1737.4237.6547.4044.7940.5936.58
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK