KHC Valuation

Kraft Heinz Co

Add to Watchlist

Advanced Chart

26.930

+0.91(3.497%)1D

Overview
Forecast
Valuation
Earnings

KHC Relative Valuation

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

Historical Valuation

Kraft Heinz Co (KHC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.95 is considered Undervalued compared with the five-year average of 12.79. The fair price of Kraft Heinz Co (KHC) is between 30.19 to 37.75 according to relative valuation methord. Compared to the current price of 26.93 USD , Kraft Heinz Co is Undervalued By 10.8%.

Relative Value

Fair Zone

30.19-37.75

Current Price：26.93

10.8%

Undervalued

9.95

Trailing

Forward

8.72

EV/EBITDA

Kraft Heinz Co. (KHC) has a current EV/EBITDA of 8.72. The 5-year average EV/EBITDA is 10.38. The thresholds are as follows: Strongly Undervalued below 8.12, Undervalued between 8.12 and 9.25, Fairly Valued between 11.51 and 9.25, Overvalued between 11.51 and 12.65, and Strongly Overvalued above 12.65. The current Forward EV/EBITDA of 8.72 falls within the Undervalued range.

10.57

EV/EBIT

Kraft Heinz Co. (KHC) has a current EV/EBIT of 10.57. The 5-year average EV/EBIT is 12.55. The thresholds are as follows: Strongly Undervalued below 9.64, Undervalued between 9.64 and 11.09, Fairly Valued between 14.00 and 11.09, Overvalued between 14.00 and 15.46, and Strongly Overvalued above 15.46. The current Forward EV/EBIT of 10.57 falls within the Undervalued range.

1.30

Kraft Heinz Co. (KHC) has a current PS of 1.30. The 5-year average PS is 1.67. The thresholds are as follows: Strongly Undervalued below 1.27, Undervalued between 1.27 and 1.47, Fairly Valued between 1.87 and 1.47, Overvalued between 1.87 and 2.06, and Strongly Overvalued above 2.06. The current Forward PS of 1.30 falls within the Undervalued range.

7.48

P/OCF

Kraft Heinz Co. (KHC) has a current P/OCF of 7.48. The 5-year average P/OCF is 9.54. The thresholds are as follows: Strongly Undervalued below 6.01, Undervalued between 6.01 and 7.77, Fairly Valued between 11.30 and 7.77, Overvalued between 11.30 and 13.07, and Strongly Overvalued above 13.07. The current Forward P/OCF of 7.48 falls within the Undervalued range.

9.45

P/FCF

Kraft Heinz Co. (KHC) has a current P/FCF of 9.45. The 5-year average P/FCF is 12.53. The thresholds are as follows: Strongly Undervalued below 7.14, Undervalued between 7.14 and 9.84, Fairly Valued between 15.23 and 9.84, Overvalued between 15.23 and 17.92, and Strongly Overvalued above 17.92. The current Forward P/FCF of 9.45 falls within the Undervalued range.

Kraft Heinz Co (KHC) has a current Price-to-Book (P/B) ratio of 0.74. Compared to its 3-year average P/B ratio of 0.86 , the current P/B ratio is approximately -13.14% higher. Relative to its 5-year average P/B ratio of 0.88, the current P/B ratio is about -15.46% higher. Kraft Heinz Co (KHC) has a Forward Free Cash Flow (FCF) yield of approximately 10.55%. Compared to its 3-year average FCF yield of 6.88%, the current FCF yield is approximately 53.35% lower. Relative to its 5-year average FCF yield of 7.75% , the current FCF yield is about 36.26% lower.

0.74

P/B

Median3y

0.86

Median5y

0.88

10.55

FCF Yield

Median3y

6.88

Median5y

7.75

Competitors Valuation Multiple

The average P/S ratio for KHC's competitors is 1.04, providing a benchmark for relative valuation. Kraft Heinz Co Corp (KHC) exhibits a P/S ratio of 1.30, which is 25.18% above the industry average. Given its robust revenue growth of -1.91%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Oatly Group AB (publ)

0.62

3.05%

507.40M

Performance Decomposition

Market capitalization of KHC decreased by 23.98% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.07 to -5.91.

The secondary factor is the Revenue Growth, contributed -1.91%to the performance.

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

-1.91%

6.48B → 6.35B

Revenue Growth

-8097.40%

1.54 → -123.16

Margin Expansion

8075.33%

-0.07 → -5.91

P/E Change

-23.98%