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

As of today, Brown-Forman Corp's current share price is $98.07. Brown-Forman Corp's E10 for the quarter that ended in Jan. 2016 was $2.39. Brown-Forman Corp's Shiller P/E Ratio for today is 41.03.

BF.B' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.93   Max: 47.35
Current: 40.34

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 31.61.

BF.B's Shiller P/E Ratio is ranked lower than
71% of the 49 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 28.60 vs. BF.B: 40.34 )

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 $2.39 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
=98.07/2.39
=41.03

* 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

201310201401201404201407201410201501201504201507201510201601
per share eps 0.9600.8200.6190.7000.9700.8700.6680.7500.9700.940
CPI 233.546233.916237.072238.250237.433233.707236.599238.654237.838236.916
Adj_EPS 0.9740.8310.6190.6960.9680.8820.6690.7450.9660.940
201104201107201110201201201204201207201210201301201304201307
per share eps 0.7570.5400.7300.6200.4860.6900.8000.7300.5250.660
CPI 224.906225.922226.421226.665230.085229.104231.317230.280232.531233.596
Adj_EPS 0.7970.5660.7640.6480.5000.7140.8190.7510.5350.669
200810200901200904200907200910201001201004201007201010201101
per share eps 0.6270.5400.3550.5400.6600.4870.3300.5070.7000.640
CPI 216.573211.143213.240215.351216.177216.687218.009218.011218.711220.223
Adj_EPS 0.6860.6060.3940.5940.7230.5320.3590.5510.7580.689
200604200607200610200701200704200707200710200801200804200807
per share eps 0.3360.4050.5330.4510.2850.4110.5550.5000.4360.387
CPI 201.500203.500201.800202.416206.686208.299208.936211.080214.823219.964
Adj_EPS 0.3950.4720.6260.5280.3270.4670.6290.5610.4810.417

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 37.4630.3928.3723.2526.4127.1329.9634.2539.2737.86

Brown-Forman Corp Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ShillerPE 33.1034.7739.2736.9338.6337.5037.8647.2044.6140.82
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