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Brown-Forman Corp (NYSE:BF.B)
Shiller PE Ratio
35.17 (As of Today)

As of today, Brown-Forman Corp's current share price is $48.88. Brown-Forman Corp's E10 for the quarter that ended in Oct. 2016 was $1.39. Brown-Forman Corp's Shiller P/E Ratio for today is 35.17.

BF.B' s Shiller PE Ratio Range Over the Past 10 Years
Min: 18.8   Max: 47.17
Current: 34.2

18.8
47.17

During the past 13 years, Brown-Forman Corp's highest Shiller P/E Ratio was 47.17. The lowest was 18.80. And the median was 31.30.

BF.B's Shiller PE Ratio is ranked lower than
61% of the 54 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 28.09 vs. BF.B: 34.20 )

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. 2016 was $0.500. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.39 for the trailing ten years ended in Oct. 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
=48.88/1.39
=35.17

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Brown-Forman Corp's E10 for the fiscal year that ended in Apr16 is calculated as:

For example, Brown-Forman Corp's adjusted earnings per share data for the three months ended in Oct. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2016 (Change)*Current CPI (Oct. 2016)
=0.5/241.729*241.729
=0.500

Current CPI (Oct. 2016) = 241.729.

Brown-Forman Corp Quarterly Data

201407201410201501201504201507201510201601201604201607201610
per share eps 0.3500.4850.4350.3350.3700.4900.4701.2850.3600.500
CPI 238.250237.433233.707236.599238.654237.838236.916239.261240.628241.729
Adj_EPS 0.3550.4940.4500.3420.3750.4980.4801.2980.3620.500
201201201204201207201210201301201304201307201310201401201404
per share eps 0.3100.2400.3450.4000.3650.2650.3300.4800.4100.305
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.3310.2520.3640.4180.3830.2750.3410.4970.4240.311
200907200910201001201004201007201010201101201104201107201110
per share eps 0.2700.3300.2430.1630.2530.3500.3200.3770.2700.365
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.3030.3690.2710.1810.2810.3870.3510.4050.2890.390
200701200704200707200710200801200804200807200810200901200904
per share eps 0.2260.1450.2050.2770.2500.2200.1930.3130.2700.177
CPI 202.416206.686208.299208.936211.080214.823219.964216.573211.143213.240
Adj_EPS 0.2700.1700.2380.3200.2860.2480.2120.3490.3090.201

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 local exchange's currency.

Brown-Forman Corp Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ShillerPE 30.1528.1423.0626.2326.9829.8134.0438.9737.8336.73

Brown-Forman Corp Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ShillerPE 36.6638.3537.2337.8347.1845.0041.1736.7336.7433.31
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