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

As of today, Brown-Forman Corp's current share price is $51.03. Brown-Forman Corp's E10 for the quarter that ended in Apr. 2016 was $1.32. Brown-Forman Corp's Shiller P/E Ratio for today is 38.66.

BF.B' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.8   Max: 47.54
Current: 38.25

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 31.58.

BF.B's Shiller P/E Ratio is ranked lower than
67% of the 51 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 29.97 vs. BF.B: 38.25 )

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 Apr. 2016 was $1.285. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.32 for the trailing ten years ended in Apr. 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
=51.03/1.32
=38.66

* 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 Apr16 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Apr. 2016 (Change)*Current CPI (Apr. 2016)
=1.285/239.261*239.261
=1.285

Current CPI (Apr. 2016) = 239.261.

Brown-Forman Corp Quarterly Data

201401201404201407201410201501201504201507201510201601201604
per share eps 0.4100.3050.3500.4850.4350.3350.3750.4850.4701.285
CPI 233.916237.072238.250237.433233.707236.599238.654237.838236.916239.261
Adj_EPS 0.4190.3080.3510.4890.4450.3390.3760.4880.4751.285
201107201110201201201204201207201210201301201304201307201310
per share eps 0.2700.3650.3100.2400.3450.4000.3650.2650.3300.480
CPI 225.922226.421226.665230.085229.104231.317230.280232.531233.596233.546
Adj_EPS 0.2860.3860.3270.2500.3600.4140.3790.2730.3380.492
200901200904200907200910201001201004201007201010201101201104
per share eps 0.2700.1770.2700.3300.2430.1630.2530.3500.3200.377
CPI 211.143213.240215.351216.177216.687218.009218.011218.711220.223224.906
Adj_EPS 0.3060.1990.3000.3650.2680.1790.2780.3830.3480.401
200607200610200701200704200707200710200801200804200807200810
per share eps 0.2030.2670.2260.1450.2050.2770.2500.2200.1930.313
CPI 203.500201.800202.416206.686208.299208.936211.080214.823219.964216.573
Adj_EPS 0.2390.3170.2670.1680.2350.3170.2830.2450.2100.346

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 30.0428.2823.1826.1227.1129.9633.8938.7838.0036.55

Brown-Forman Corp Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ShillerPE 34.7338.7836.8338.1537.4038.0047.3744.7740.9636.55
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