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BF.B (Brown-Forman) E10 : $2.07 (As of Oct. 2024)


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What is Brown-Forman E10?

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's adjusted earnings per share data for the three months ended in Oct. 2024 was $0.550. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.07 for the trailing ten years ended in Oct. 2024.

During the past 12 months, Brown-Forman's average E10 Growth Rate was 5.10% per year. During the past 3 years, the average E10 Growth Rate was 8.00% per year. During the past 5 years, the average E10 Growth Rate was 8.10% per year. During the past 10 years, the average E10 Growth Rate was 8.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Brown-Forman was 10.80% per year. The lowest was 6.30% per year. And the median was 8.90% per year.

As of today (2024-12-13), Brown-Forman's current stock price is $44.96. Brown-Forman's E10 for the quarter that ended in Oct. 2024 was $2.07. Brown-Forman's Shiller PE Ratio of today is 21.72.

During the past 13 years, the highest Shiller PE Ratio of Brown-Forman was 51.69. The lowest was 19.70. And the median was 37.69.


Brown-Forman E10 Historical Data

The historical data trend for Brown-Forman's E10 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 E10 Chart

Brown-Forman Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.49 1.62 1.82 1.93 2.04

Brown-Forman Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
E10 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 1.97 1.99 2.04 2.05 2.07

Competitive Comparison of Brown-Forman's E10

For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Beverages - Alcoholic Industry

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

* The bar in red indicates where Brown-Forman's Shiller PE Ratio falls into.



Brown-Forman E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, Brown-Forman's adjusted earnings per share data for the three months ended in Oct. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2024 (Change)*Current CPI (Oct. 2024)
=0.55/133.1820*133.1820
=0.550

Current CPI (Oct. 2024) = 133.1820.

Brown-Forman Quarterly Data

per share eps CPI Adj_EPS
201501 0.348 98.604 0.470
201504 0.264 99.824 0.352
201507 0.296 100.691 0.392
201510 0.392 100.346 0.520
201601 0.376 99.957 0.501
201604 1.040 100.947 1.372
201607 0.288 101.524 0.378
201610 0.400 101.988 0.522
201701 0.380 102.456 0.494
201704 0.296 103.167 0.382
201707 0.370 103.278 0.477
201710 0.490 104.070 0.627
201801 0.390 104.578 0.497
201804 0.230 105.708 0.290
201807 0.410 106.324 0.514
201810 0.520 106.695 0.649
201901 0.470 106.200 0.589
201904 0.330 107.818 0.408
201907 0.390 108.250 0.480
201910 0.590 108.577 0.724
202001 0.480 108.841 0.587
202004 0.270 108.173 0.332
202007 0.670 109.318 0.816
202010 0.500 109.861 0.606
202101 0.450 110.364 0.543
202104 0.250 112.673 0.296
202107 0.400 115.183 0.463
202110 0.490 116.696 0.559
202201 0.540 118.619 0.606
202204 0.310 121.978 0.338
202207 0.520 125.002 0.554
202210 0.470 125.734 0.498
202301 0.210 126.223 0.222
202304 0.430 127.992 0.447
202307 0.480 128.974 0.496
202310 0.500 129.810 0.513
202401 0.600 130.124 0.614
202404 0.560 132.289 0.564
202407 0.410 132.708 0.411
202410 0.550 133.182 0.550

Add all the adjusted EPS together and divide 10 will get our e10.


Brown-Forman  (NYSE:BF.B) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=44.96/2.07
=21.72

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Brown-Forman was 51.69. The lowest was 19.70. And the median was 37.69.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Brown-Forman E10 Related Terms

Thank you for viewing the detailed overview of Brown-Forman's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Brown-Forman Business Description

Address
850 Dixie Highway, Louisville, KY, USA, 40210
Brown-Forman is a us-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 45% 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.
Executives
Elizabeth M Brown director 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Elizabeth A Smith director 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Mark A. Clouse director C/O MONDELEZ INTERNATIONAL, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Jeremy J Shepherd officer: VP, Pres, USA & Canada 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Crystal L Peterson officer: SVP, Chief Inclusion Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Jan Singer director 2 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10016
Timothy M Nall officer: SVP CIO 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Leanne D Cunningham officer: SVP, Chief Fin Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Matias Bentel officer: SVP, Chief Brands Officer 850 DIXIE HWY, LOUISVILLE KY 40210
Kelli Nelson officer: SVP, Chief Accounting Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Mike J. Keyes officer: SVP, Chief Corporate Affairs 850 DIXIE HWY, LOUISVILLE KY 40210
Tracy L Skeans director 1441 GARDINER LANE, LOUISVILLE KY 40213
John V. Hayes officer: SVP, Chief Marketing Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Michael Andrew Masick officer: VP DIR CORP STRATEGY 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Kathleen M. Gutmann director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328