GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Brown-Forman Corp (NYSE:BF.A) » Definitions » Cyclically Adjusted Price-to-FCF

Brown-Forman (Brown-Forman) Cyclically Adjusted Price-to-FCF : 34.83 (As of Apr. 27, 2024)


View and export this data going back to 1973. Start your Free Trial

What is Brown-Forman Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Brown-Forman's current share price is $49.46. Brown-Forman's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $1.42. Brown-Forman's Cyclically Adjusted Price-to-FCF for today is 34.83.

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

BF.A' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 34.36   Med: 47.36   Max: 73.5
Current: 34.84

During the past years, Brown-Forman's highest Cyclically Adjusted Price-to-FCF was 73.50. The lowest was 34.36. And the median was 47.36.

BF.A's Cyclically Adjusted Price-to-FCF is ranked worse than
58.56% of 111 companies
in the Beverages - Alcoholic industry
Industry Median: 26.89 vs BF.A: 34.84

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Brown-Forman's adjusted free cash flow per share data for the three months ended in Jan. 2024 was $0.412. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $1.42 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Brown-Forman Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Brown-Forman's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Brown-Forman Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.42 57.65 64.82 50.34 46.68

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 Price-to-FCF 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 48.48 46.68 50.92 40.59 39.74

Competitive Comparison of Brown-Forman's Cyclically Adjusted Price-to-FCF

For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution in the Beverages - Alcoholic Industry

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

* The bar in red indicates where Brown-Forman's Cyclically Adjusted Price-to-FCF falls into.



Brown-Forman Cyclically Adjusted Price-to-FCF Calculation

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

Brown-Forman's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=49.46/1.42
=34.83

* 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 FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.412/129.4194*129.4194
=0.412

Current CPI (Jan. 2024) = 129.4194.

Brown-Forman Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.407 100.023 0.527
201407 0.151 100.520 0.194
201410 -0.139 100.176 -0.180
201501 0.512 98.604 0.672
201504 0.386 99.824 0.500
201507 0.207 100.691 0.266
201510 -0.025 100.346 -0.032
201601 0.520 99.957 0.673
201604 0.112 100.947 0.144
201607 0.224 101.524 0.286
201610 0.043 101.988 0.055
201701 0.496 102.456 0.627
201704 0.350 103.167 0.439
201707 0.159 103.278 0.199
201710 0.157 104.070 0.195
201801 0.677 104.578 0.838
201804 0.090 105.708 0.110
201807 0.213 106.324 0.259
201810 0.236 106.695 0.286
201901 0.571 106.200 0.696
201904 0.391 107.818 0.469
201907 0.106 108.250 0.127
201910 0.173 108.577 0.206
202001 0.595 108.841 0.707
202004 0.398 108.173 0.476
202007 0.158 109.318 0.187
202010 0.368 109.861 0.434
202101 0.574 110.364 0.673
202104 0.470 112.673 0.540
202107 0.354 115.183 0.398
202110 0.271 116.696 0.301
202201 0.662 118.619 0.722
202204 0.375 121.978 0.398
202207 0.291 125.002 0.301
202210 0.239 125.734 0.246
202301 0.081 126.223 0.083
202304 0.339 127.992 0.343
202307 -0.023 128.974 -0.023
202310 0.060 129.810 0.060
202401 0.412 129.419 0.412

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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  (NYSE:BF.A) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Brown-Forman Cyclically Adjusted Price-to-FCF Related Terms

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


Brown-Forman (Brown-Forman) 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.
Executives
De Chabert Ralph E officer: SVP, Chief Diversity Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Augusta Brown Holland director 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Kelli Nelson officer: SVP, Chief Accounting Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Chavanne Patrick Bousquet director 767 FIFTH AVENUE, NEW YORK NY 10153
Matthew E Hamel officer: EVP, Gen Counsel and Secretary 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Michael Todman director C/O TMA LIMITED, LLC, 500 RENAISSANCE DRIVE, SUITE 103B, ST. JOSEPH MI 49085
Matias Bentel officer: SVP, Chief Brands Officer 850 DIXIE HWY, LOUISVILLE KY 40210
John V. Hayes officer: SVP/President, USA & Canada 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Tracy L Skeans director 1441 GARDINER LANE, LOUISVILLE KY 40213
Thomas Hinrichs officer: SVP/Pres., Emerging Intl 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Kirsten M Hawley officer: SVP, Chief HR Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Kathleen M. Gutmann director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Alejandro A Alvarez officer: SVP, Chief Production Officer 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Lawson E Whiting director, officer: President & CEO 850 DIXIE HIGHWAY, LOUISVILLE KY 40228
John D. Cook director 850 DIXIE HIGHWAY, LOUISVILLE KY 40210