Using the industry peer median P/E multiple (trailing + forward), Sysco Corporation (SYY) has a fair value of $74.95 based on 5 comparable companies in the Food Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Sysco CorporationSYY | 40,729 | 22.3x | 19.0x |
| The Kroger Co.KR | 45,318 | 46.5x | 13.8x |
| The Hershey CompanyHSY | 42,970 | 48.8x | 25.3x |
| Keurig Dr Pepper Inc.KDP | 35,713 | 17.2x | 13.7x |
| Kenvue Inc.KVUE | 33,610 | 23.1x | 15.4x |
| Kimberly-Clark CorporationKMB | 32,753 | 16.3x | 13.1x |
| Industry Median | 23.1x | 13.8x | |
| (*) Profit after tax | 1,828 | 2,144 | |
| Equity Value | 42,176 | 31,247 | |
| (/) Outstanding shares | 490 | 490 | |
| Fair Price | $86 | $64 | |
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.