Using the industry peer median P/E multiple (trailing + forward), General Mills, Inc. (GIS) has a fair value of $61.19 based on 5 comparable companies in the Packaged Foods industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| General Mills, Inc.GIS | 20,048 | 8.8x | 10.5x |
| Archer-Daniels-Midland CompanyADM | 34,983 | 32.6x | 18.2x |
| Dollar General CorporationDG | 26,410 | 17.5x | 16.4x |
| McCormick & Company, IncorporatedMKC | 13,924 | 17.7x | 16.8x |
| Hormel Foods CorporationHRL | 12,577 | 26.3x | 14.4x |
| Conagra Brands, Inc.CAG | 7,288 | 6.3x | 8.8x |
| Industry Median | 17.7x | 16.4x | |
| (*) Profit after tax | 2,295 | 1,910 | |
| Equity Value | 40,632 | 27,597 | |
| (/) Outstanding shares | 558 | 558 | |
| Fair Price | $73 | $50 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.