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 28.90 is considered Overvalued compared with the five-year average of 24.25. The fair price of Hershey Co (HSY) is between 131.50 to 164.74 according to relative valuation methord. Compared to the current price of 181.36 USD , Hershey Co is Overvalued By 10.09%.
Relative Value
Fair Zone
131.50-164.74
Current Price：181.36
10.09%
Overvalued
29.07
PE
1Y
3Y
5Y
Trailing
Forward
17.13
EV/EBITDA
Hershey Co. (HSY) has a current EV/EBITDA of 17.13. The 5-year average EV/EBITDA is 16.67. The thresholds are as follows: Strongly Undervalued below 13.35, Undervalued between 13.35 and 15.01, Fairly Valued between 18.33 and 15.01, Overvalued between 18.33 and 19.99, and Strongly Overvalued above 19.99. The current Forward EV/EBITDA of 17.13 falls within the Historic Trend Line -Fairly Valued range.
21.16
EV/EBIT
Hershey Co. (HSY) has a current EV/EBIT of 21.16. The 5-year average EV/EBIT is 19.56. The thresholds are as follows: Strongly Undervalued below 15.36, Undervalued between 15.36 and 17.46, Fairly Valued between 21.66 and 17.46, Overvalued between 21.66 and 23.75, and Strongly Overvalued above 23.75. The current Forward EV/EBIT of 21.16 falls within the Historic Trend Line -Fairly Valued range.
3.10
PS
Hershey Co. (HSY) has a current PS of 3.10. The 5-year average PS is 3.75. The thresholds are as follows: Strongly Undervalued below 2.67, Undervalued between 2.67 and 3.21, Fairly Valued between 4.29 and 3.21, Overvalued between 4.29 and 4.84, and Strongly Overvalued above 4.84. The current Forward PS of 3.10 falls within the Undervalued range.
19.34
P/OCF
Hershey Co. (HSY) has a current P/OCF of 19.34. The 5-year average P/OCF is 18.62. The thresholds are as follows: Strongly Undervalued below 12.88, Undervalued between 12.88 and 15.75, Fairly Valued between 21.50 and 15.75, Overvalued between 21.50 and 24.37, and Strongly Overvalued above 24.37. The current Forward P/OCF of 19.34 falls within the Historic Trend Line -Fairly Valued range.
29.92
P/FCF
Hershey Co. (HSY) has a current P/FCF of 29.92. The 5-year average P/FCF is 27.41. The thresholds are as follows: Strongly Undervalued below 11.76, Undervalued between 11.76 and 19.59, Fairly Valued between 35.24 and 19.59, Overvalued between 35.24 and 43.06, and Strongly Overvalued above 43.06. The current Forward P/FCF of 29.92 falls within the Historic Trend Line -Fairly Valued range.
Hershey Co (HSY) has a current Price-to-Book (P/B) ratio of 8.02. Compared to its 3-year average P/B ratio of 10.26 , the current P/B ratio is approximately -21.81% higher. Relative to its 5-year average P/B ratio of 12.27, the current P/B ratio is about -34.61% higher. Hershey Co (HSY) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.12%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.08% , the current FCF yield is about -100.00% lower.
8.11
P/B
Median3y
10.26
Median5y
12.27
5.03
FCF Yield
Median3y
4.12
Median5y
4.08
Competitors Valuation Multiple
The average P/S ratio for HSY's competitors is , providing a benchmark for relative valuation. Hershey Co Corp (HSY) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.49%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HSY increased by 8.67% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.94 to 27.27.
The secondary factor is the Revenue Growth, contributed 6.49%to the performance.
Overall, the performance of HSY in the past 1 year is driven by P/E Change. Which is more unsustainable.
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