Using the industry peer median P/E multiple (trailing + forward), McCormick & Company, Incorporated (MKC) has a fair value of $58.85 based on 4 comparable companies in the Packaged Foods industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| McCormick & Company, IncorporatedMKC | 13,956 | 17.7x | 16.8x |
| Bunge Global S.A.BG | 24,341 | 25.6x | 13.5x |
| Tyson Foods, Inc.TSN | 22,502 | 46.4x | 21.9x |
| Hormel Foods CorporationHRL | 12,577 | 26.3x | 14.4x |
| Campbell Soup CompanyCPB | 6,222 | 10.4x | 9.5x |
| Industry Median | 25.9x | 14.0x | |
| (*) Profit after tax | 789 | 833 | |
| Equity Value | 20,481 | 11,218 | |
| (/) Outstanding shares | 269 | 269 | |
| Fair Price | $76 | $42 | |
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.