HLF Valuation

Herbalife Ltd

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9.090

-0.11(-1.196%)1D

HLF Relative Valuation

HLF's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HLF is overvalued; if below, it's undervalued.

Historical Valuation

Herbalife Ltd (HLF) is now in the Undervalued zone, suggesting that its current forward PE ratio of 3.79 is considered Undervalued compared with the five-year average of 6.99. The fair price of Herbalife Ltd (HLF) is between 11.70 to 21.95 according to relative valuation methord. Compared to the current price of 9.09 USD , Herbalife Ltd is Undervalued By 22.31%.

Relative Value

Fair Zone

11.70-21.95

Current Price：9.09

22.31%

Undervalued

3.79

Trailing

Forward

4.21

EV/EBITDA

Herbalife Ltd. (HLF) has a current EV/EBITDA of 4.21. The 5-year average EV/EBITDA is 6.52. The thresholds are as follows: Strongly Undervalued below 3.44, Undervalued between 3.44 and 4.98, Fairly Valued between 8.06 and 4.98, Overvalued between 8.06 and 9.60, and Strongly Overvalued above 9.60. The current Forward EV/EBITDA of 4.21 falls within the Undervalued range.

5.24

EV/EBIT

Herbalife Ltd. (HLF) has a current EV/EBIT of 5.24. The 5-year average EV/EBIT is 8.13. The thresholds are as follows: Strongly Undervalued below 4.37, Undervalued between 4.37 and 6.25, Fairly Valued between 10.01 and 6.25, Overvalued between 10.01 and 11.89, and Strongly Overvalued above 11.89. The current Forward EV/EBIT of 5.24 falls within the Undervalued range.

9.09

Herbalife Ltd. (HLF) has a current PS of 9.09. The 5-year average PS is 0.49. The thresholds are as follows: Strongly Undervalued below -0.98, Undervalued between -0.98 and -0.24, Fairly Valued between 1.23 and -0.24, Overvalued between 1.23 and 1.96, and Strongly Overvalued above 1.96. The current Forward PS of 9.09 falls within the Strongly Overvalued range.

0.00

P/OCF

Herbalife Ltd. (HLF) has a current P/OCF of 0.00. The 5-year average P/OCF is 4.79. The thresholds are as follows: Strongly Undervalued below -0.86, Undervalued between -0.86 and 1.96, Fairly Valued between 7.62 and 1.96, Overvalued between 7.62 and 10.45, and Strongly Overvalued above 10.45. The current Forward P/OCF of 0.00 falls within the Undervalued range.

0.00

P/FCF

Herbalife Ltd. (HLF) has a current P/FCF of 0.00. The 5-year average P/FCF is 8.06. The thresholds are as follows: Strongly Undervalued below -0.20, Undervalued between -0.20 and 3.93, Fairly Valued between 12.18 and 3.93, Overvalued between 12.18 and 16.31, and Strongly Overvalued above 16.31. The current Forward P/FCF of 0.00 falls within the Undervalued range.

Herbalife Ltd (HLF) has a current Price-to-Book (P/B) ratio of -1.53. Compared to its 3-year average P/B ratio of -1.10 , the current P/B ratio is approximately 39.94% higher. Relative to its 5-year average P/B ratio of -2.10, the current P/B ratio is about -26.85% higher. Herbalife Ltd (HLF) has a Forward Free Cash Flow (FCF) yield of approximately 23.11%. Compared to its 3-year average FCF yield of 17.11%, the current FCF yield is approximately 35.01% lower. Relative to its 5-year average FCF yield of 13.95% , the current FCF yield is about 65.70% lower.

-1.53

P/B

Median3y

-1.10

Median5y

-2.10

23.11

FCF Yield

Median3y

17.11

Median5y

13.95

Competitors Valuation Multiple

The average P/S ratio for HLF's competitors is 5.89, providing a benchmark for relative valuation. Herbalife Ltd Corp (HLF) exhibits a P/S ratio of 9.09, which is 54.46% above the industry average. Given its robust revenue growth of 2.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Oatly Group AB (publ)

Above Food Ingredients Inc

3.83

139.75M

HAIN.O

Hain Celestial Group Inc

1.20

-6.77%

108.35M

Performance Decomposition

Market capitalization of HLF increased by 16.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 2.32 to 2.92.

The secondary factor is the Revenue Growth, contributed 2.69%to the performance.

Overall, the performance of HLF in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.69%

1.24B → 1.27B

Revenue Growth

-11.52%

3.82 → 3.38

Margin Expansion

25.82%

2.32 → 2.92

P/E Change

16.99%