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Brown-Forman (FRA:BF5B) Cyclically Adjusted PS Ratio : 5.42 (As of May. 25, 2024)


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What is Brown-Forman Cyclically Adjusted PS Ratio?

As of today (2024-05-25), Brown-Forman's current share price is €42.57. Brown-Forman's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 was €7.85. Brown-Forman's Cyclically Adjusted PS Ratio for today is 5.42.

The historical rank and industry rank for Brown-Forman's Cyclically Adjusted PS Ratio or its related term are showing as below:

FRA:BF5B' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 5.48   Med: 8.01   Max: 12.42
Current: 5.48

During the past years, Brown-Forman's highest Cyclically Adjusted PS Ratio was 12.42. The lowest was 5.48. And the median was 8.01.

FRA:BF5B's Cyclically Adjusted PS Ratio is ranked worse than
85.03% of 167 companies
in the Beverages - Alcoholic industry
Industry Median: 1.84 vs FRA:BF5B: 5.48

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Brown-Forman's adjusted revenue per share data for the three months ended in Jan. 2024 was €2.064. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €7.85 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Brown-Forman Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Brown-Forman's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brown-Forman Cyclically Adjusted PS Ratio Chart

Brown-Forman Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.61 9.80 11.26 8.95 8.03

Brown-Forman Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.39 8.03 8.60 6.77 6.58

Competitive Comparison of Brown-Forman's Cyclically Adjusted PS Ratio

For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Brown-Forman's Cyclically Adjusted PS Ratio Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Brown-Forman's Cyclically Adjusted PS Ratio falls into.



Brown-Forman Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Brown-Forman's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=42.57/7.85
=5.42

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Brown-Forman's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Brown-Forman's adjusted Revenue per Share data for the three months ended in Jan. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=2.064/130.1244*130.1244
=2.064

Current CPI (Jan. 2024) = 130.1244.

Brown-Forman Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201404 0.928 100.023 1.207
201407 0.969 100.520 1.254
201410 1.296 100.176 1.683
201501 1.317 98.604 1.738
201504 1.293 99.824 1.685
201507 1.218 100.691 1.574
201510 1.482 100.346 1.922
201601 1.473 99.957 1.918
201604 1.282 100.947 1.653
201607 1.208 101.524 1.548
201610 1.539 101.988 1.964
201701 1.569 102.456 1.993
201704 1.341 103.167 1.691
201707 1.298 103.278 1.635
201710 1.609 104.070 2.012
201801 1.487 104.578 1.850
201804 1.228 105.708 1.512
201807 1.354 106.324 1.657
201810 1.637 106.695 1.996
201901 1.649 106.200 2.020
201904 1.379 107.818 1.664
201907 1.423 108.250 1.711
201910 1.861 108.577 2.230
202001 1.685 108.841 2.015
202004 1.358 108.173 1.634
202007 1.364 109.318 1.624
202010 1.742 109.861 2.063
202101 1.555 110.364 1.833
202104 1.412 112.673 1.631
202107 1.594 115.183 1.801
202110 1.783 116.696 1.988
202201 1.908 118.619 2.093
202204 1.920 121.978 2.048
202207 2.060 125.002 2.144
202210 2.311 125.734 2.392
202301 2.088 126.223 2.153
202304 1.986 127.992 2.019
202307 1.953 128.974 1.970
202310 2.183 129.810 2.188
202401 2.064 130.124 2.064

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Brown-Forman  (FRA:BF5B) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Brown-Forman Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Brown-Forman's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Brown-Forman (FRA:BF5B) Business Description

Traded in Other Exchanges
Address
850 Dixie Highway, Louisville, KY, USA, 40210
Brown-Forman is a U.S.-based manufacturer of premium distilled spirits that generates close to 70% of revenues in the whiskey category, under well-known Tennessee whiskey brand Jack Daniel's and bourbon brands Woodford Reserve and Old Forester. It also manufactures and distributes tequila, vodka, rum, gin, and premium wines. The company generates 47% of sales from its home market, while the bulk of international revenues come from Europe, Australia, and Latin America. The Brown family controls over 50% of the economic interests and a 67% voting power of the company.

Brown-Forman (FRA:BF5B) Headlines

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