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HSY Valuation

Hershey Co
$
188.830
+2.6(1.396%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

HSY Relative Valuation

HSY'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, HSY is overvalued; if below, it's undervalued.

Historical Valuation

Hershey Co (HSY) is now in the Overvalued zone, suggesting that its current forward PE ratio of 33.35 is considered Overvalued compared with the five-year average of 23.69. The fair price of Hershey Co (HSY) is between 120.59 to 145.69 according to relative valuation methord. Compared to the current price of 188.83 USD , Hershey Co is Overvalued By 29.61%.
Relative Value
Fair Zone
120.59-145.69
Current Price:188.83
29.61%
Overvalued
33.35
PE
1Y
3Y
5Y
Trailing
Forward
20.01
EV/EBITDA
Hershey Co. (HSY) has a current EV/EBITDA of 20.01. The 5-year average EV/EBITDA is 16.53. The thresholds are as follows: Strongly Undervalued below 13.29, Undervalued between 13.29 and 14.91, Fairly Valued between 18.16 and 14.91, Overvalued between 18.16 and 19.78, and Strongly Overvalued above 19.78. The current Forward EV/EBITDA of 20.01 falls within the Strongly Overvalued range.
25.06
EV/EBIT
Hershey Co. (HSY) has a current EV/EBIT of 25.06. The 5-year average EV/EBIT is 19.30. The thresholds are as follows: Strongly Undervalued below 15.41, Undervalued between 15.41 and 17.35, Fairly Valued between 21.25 and 17.35, Overvalued between 21.25 and 23.20, and Strongly Overvalued above 23.20. The current Forward EV/EBIT of 25.06 falls within the Strongly Overvalued range.
3.25
PS
Hershey Co. (HSY) has a current PS of 3.25. The 5-year average PS is 3.79. The thresholds are as follows: Strongly Undervalued below 2.75, Undervalued between 2.75 and 3.27, Fairly Valued between 4.31 and 3.27, Overvalued between 4.31 and 4.83, and Strongly Overvalued above 4.83. The current Forward PS of 3.25 falls within the Undervalued range.
21.53
P/OCF
Hershey Co. (HSY) has a current P/OCF of 21.53. The 5-year average P/OCF is 18.56. The thresholds are as follows: Strongly Undervalued below 12.78, Undervalued between 12.78 and 15.67, Fairly Valued between 21.46 and 15.67, Overvalued between 21.46 and 24.35, and Strongly Overvalued above 24.35. The current Forward P/OCF of 21.53 falls within the Overvalued range.
29.48
P/FCF
Hershey Co. (HSY) has a current P/FCF of 29.48. The 5-year average P/FCF is 27.23. The thresholds are as follows: Strongly Undervalued below 11.57, Undervalued between 11.57 and 19.40, Fairly Valued between 35.05 and 19.40, Overvalued between 35.05 and 42.88, and Strongly Overvalued above 42.88. The current Forward P/FCF of 29.48 falls within the Historic Trend Line -Fairly Valued range.
Hershey Co (HSY) has a current Price-to-Book (P/B) ratio of 8.15. Compared to its 3-year average P/B ratio of 11.13 , the current P/B ratio is approximately -26.81% higher. Relative to its 5-year average P/B ratio of 12.81, the current P/B ratio is about -36.40% higher. Hershey Co (HSY) has a Forward Free Cash Flow (FCF) yield of approximately 4.83%. Compared to its 3-year average FCF yield of 4.00%, the current FCF yield is approximately 20.57% lower. Relative to its 5-year average FCF yield of 4.09% , the current FCF yield is about 18.07% lower.
8.15
P/B
Median3y
11.13
Median5y
12.81
4.83
FCF Yield
Median3y
4.00
Median5y
4.09

Competitors Valuation Multiple

The average P/S ratio for HSY's competitors is 2.02, providing a benchmark for relative valuation. Hershey Co Corp (HSY) exhibits a P/S ratio of 3.25, which is 60.67% above the industry average. Given its robust revenue growth of 26.04%, this premium appears sustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of HSY decreased by 4.38% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.34 to 23.21.
The secondary factor is the Revenue Growth, contributed 26.04%to the performance.
Overall, the performance of HSY in the past 1 year is driven by P/E Change. Which is more unsustainable.
26.04%
2.07B → 2.61B
Revenue Growth
+
-72.48%
8.72 → 2.40
Margin Expansion
+
42.06%
16.34 → 23.21
P/E Change
=
-4.38%
197.48 → 188.83
Mkt Cap Growth

FAQ

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Is Hershey Co (HSY) currently overvalued or undervalued?

Hershey Co (HSY) is now in the Overvalued zone, suggesting that its current forward PE ratio of 33.35 is considered Overvalued compared with the five-year average of 23.69. The fair price of Hershey Co (HSY) is between 120.59 to 145.69 according to relative valuation methord. Compared to the current price of 188.83 USD , Hershey Co is Overvalued By 29.61% .
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What is Hershey Co (HSY) fair value?

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How does HSY's valuation metrics compare to the industry average?

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What is the current P/B ratio for Hershey Co (HSY) as of Jul 31 2025?

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What is the current FCF Yield for Hershey Co (HSY) as of Jul 31 2025?

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What is the current Forward P/E ratio for Hershey Co (HSY) as of Jul 31 2025?

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What is the current Forward P/S ratio for Hershey Co (HSY) as of Jul 31 2025?