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

As of today, Brown-Forman Corp's current share price is $92.72. Brown-Forman Corp's E10 for the quarter that ended in Jul. 2014 was $2.64. Brown-Forman Corp's Shiller P/E Ratio for today is 34.77.

BF.B' s 10-Year Shiller P/E Ratio Range
Min: 15.82   Max: 37.88
Current: 34.77

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 26.19.

BF.B's Shiller P/E Ratiois ranked higher than
77% of the 270 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 29.16 vs. BF.B: 34.77 )

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 Jul. 2014 was $0.699. 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 $2.64 for the trailing six years ended in Jul. 2014.


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
=92.72/2.64
=35.12

* 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 Jul. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jul. 2014*CPI of Current
=0.7/238.25*238.064
=0.699

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.064.

Brown-Forman Corp Quarterly Data

201204201207201210201301201304201307201310201401201404201407
per share eps 0.4860.6900.8000.7300.5250.6600.9600.8200.6190.700
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.250
Adj_EPS 0.5030.7170.8230.7550.5370.6730.9790.8350.6220.699
200910201001201004201007201010201101201104201107201110201201
per share eps 0.6600.4870.3270.5070.7000.6400.7570.5400.7300.620
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS 0.7270.5350.3570.5540.7620.6920.8010.5690.7680.651
200810200901200904200907
per share eps 0.6270.5400.3550.540
CPI 216.573211.143213.240215.351
Adj_EPS 0.6890.6090.3960.597

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 26.6532.8626.0223.9519.1922.5123.0325.3629.5834.36

Brown-Forman Corp Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 25.3627.0726.6728.1729.5830.5129.1030.5534.3633.13
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