KHC PE Ratio & Valuation,Is KHC Overvalued

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 9.88 is considered Undervalued compared with the five-year average of 12.63. The fair price of Kraft Heinz Co (KHC) is between 25.50 to 32.72 according to relative valuation methord. Compared to the current price of 23.43 USD , Kraft Heinz Co is Undervalued By 8.11%.

Relative Value

Fair Zone

25.50-32.72

Current Price：23.43

8.11%

Undervalued

9.88

8.33

EV/EBITDA

Kraft Heinz Co. (KHC) has a current EV/EBITDA of 8.33. The 5-year average EV/EBITDA is 10.23. The thresholds are as follows: Strongly Undervalued below 7.78, Undervalued between 7.78 and 9.00, Fairly Valued between 11.46 and 9.00, Overvalued between 11.46 and 12.69, and Strongly Overvalued above 12.69. The current Forward EV/EBITDA of 8.33 falls within the Undervalued range.

10.09

EV/EBIT

Kraft Heinz Co. (KHC) has a current EV/EBIT of 10.09. The 5-year average EV/EBIT is 12.36. The thresholds are as follows: Strongly Undervalued below 9.24, Undervalued between 9.24 and 10.80, Fairly Valued between 13.92 and 10.80, Overvalued between 13.92 and 15.48, and Strongly Overvalued above 15.48. The current Forward EV/EBIT of 10.09 falls within the Undervalued range.

1.16

Kraft Heinz Co. (KHC) has a current PS of 1.16. The 5-year average PS is 1.64. The thresholds are as follows: Strongly Undervalued below 1.18, Undervalued between 1.18 and 1.41, Fairly Valued between 1.87 and 1.41, Overvalued between 1.87 and 2.10, and Strongly Overvalued above 2.10. The current Forward PS of 1.16 falls within the Strongly Undervalued range.

6.94

P/OCF

Kraft Heinz Co. (KHC) has a current P/OCF of 6.94. The 5-year average P/OCF is 9.34. The thresholds are as follows: Strongly Undervalued below 5.73, Undervalued between 5.73 and 7.54, Fairly Valued between 11.15 and 7.54, Overvalued between 11.15 and 12.95, and Strongly Overvalued above 12.95. The current Forward P/OCF of 6.94 falls within the Undervalued range.

8.76

P/FCF

Kraft Heinz Co. (KHC) has a current P/FCF of 8.76. The 5-year average P/FCF is 12.07. The thresholds are as follows: Strongly Undervalued below 6.78, Undervalued between 6.78 and 9.43, Fairly Valued between 14.71 and 9.43, Overvalued between 14.71 and 17.35, and Strongly Overvalued above 17.35. The current Forward P/FCF of 8.76 falls within the Undervalued range.

Kraft Heinz Co (KHC) has a current Price-to-Book (P/B) ratio of 0.70. Compared to its 3-year average P/B ratio of 0.83 , the current P/B ratio is approximately -16.15% higher. Relative to its 5-year average P/B ratio of 0.88, the current P/B ratio is about -20.46% higher. Kraft Heinz Co (KHC) has a Forward Free Cash Flow (FCF) yield of approximately 12.58%. Compared to its 3-year average FCF yield of 7.42%, the current FCF yield is approximately 69.56% lower. Relative to its 5-year average FCF yield of 7.83% , the current FCF yield is about 60.54% lower.

0.70

P/B

Median3y

0.83

Median5y

0.88

12.58

FCF Yield

Median3y

7.42

Median5y

7.83

Competitors Valuation Multiple

The average P/S ratio for KHC's competitors is 0.95, providing a benchmark for relative valuation. Kraft Heinz Co Corp (KHC) exhibits a P/S ratio of 1.16, which is 21.14% above the industry average. Given its robust revenue growth of -2.29%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KHC decreased by 21.89% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.68 to -6.66.

The secondary factor is the Revenue Growth, contributed -2.29%to the performance.

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

-2.29%

6.38B → 6.24B

Revenue Growth

-316.52%

-4.54 → 9.83

Margin Expansion

296.92%

-1.68 → -6.66

P/E Change

-21.89%

29.46 → 23.01

Mkt Cap Growth

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Frequently Asked Questions

Is Kraft Heinz Co (KHC) currently overvalued or undervalued?

What is Kraft Heinz Co (KHC) fair value?

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. The fair price of Kraft Heinz Co (KHC) is between 25.50 to 32.72 according to relative valuation methord.

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

What is the current P/B ratio for Kraft Heinz Co (KHC) as of Jan 08 2026?

As of Jan 08 2026, Kraft Heinz Co (KHC) has a P/B ratio of 0.70. This indicates that the market values KHC at 0.70 times its book value.

What is the current FCF Yield for Kraft Heinz Co (KHC) as of Jan 08 2026?

As of Jan 08 2026, Kraft Heinz Co (KHC) has a FCF Yield of 12.58%. This means that for every dollar of Kraft Heinz Co’s market capitalization, the company generates 12.58 cents in free cash flow.

What is the current Forward P/E ratio for Kraft Heinz Co (KHC) as of Jan 08 2026?

As of Jan 08 2026, Kraft Heinz Co (KHC) has a Forward P/E ratio of 9.88. This means the market is willing to pay $9.88 for every dollar of Kraft Heinz Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Kraft Heinz Co (KHC) as of Jan 08 2026?

As of Jan 08 2026, Kraft Heinz Co (KHC) has a Forward P/S ratio of 1.16. This means the market is valuing KHC at $1.16 for every dollar of expected revenue over the next 12 months.

KHC Valuation