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

As of today, Brown-Forman Corp's current share price is $88.78. Brown-Forman Corp's E10 for the quarter that ended in Oct. 2014 was $2.66. Brown-Forman Corp's Shiller P/E Ratio for today is 33.38.

BF.B' s 10-Year Shiller P/E Ratio Range
Min: 15.82   Max: 37.88
Current: 33.2

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 26.41.

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

( Industry Median: 28.51 vs. BF.B: 33.20 )

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. 2014 was $0.962. 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 $2.66 for the trailing six years ended in Oct. 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
=88.78/2.66
=33.38

* 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 Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=0.97/237.433*235.51
=0.962

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

Current CPI = 235.51.

Brown-Forman Corp Quarterly Data

201207201210201301201304201307201310201401201404201407201410
per share eps 0.6900.8000.7300.5250.6600.9600.8200.6190.7000.970
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250237.433
Adj_EPS 0.7090.8150.7470.5320.6650.9680.8260.6150.6920.962
201001201004201007201010201101201104201107201110201201201204
per share eps 0.4870.3270.5070.7000.6400.7570.5400.7300.6200.486
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 0.5290.3530.5480.7540.6840.7930.5630.7590.6440.497
200901200904200907200910
per share eps 0.5400.3550.5400.660
CPI 211.143213.240215.351216.177
Adj_EPS 0.6020.3920.5910.719

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 26.7332.9526.0824.0019.0622.5523.0525.3729.5934.36

Brown-Forman Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ShillerPE 27.0826.6828.1829.5930.5129.1130.5634.3633.4533.60
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