LW Relative Valuation
LW'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, LW is overvalued; if below, it's undervalued.
Historical Valuation
Lamb Weston Holdings Inc (LW) is now in the Fair zone, suggesting that its current forward PE ratio of 19.76 is considered Fairly compared with the five-year average of 22.44. The fair price of Lamb Weston Holdings Inc (LW) is between 45.00 to 74.75 according to relative valuation methord.
Relative Value
Fair Zone
45.00-74.75
Current Price：54.34
Fair
18.44
PE
1Y
3Y
5Y
Trailing
Forward
10.35
EV/EBITDA
Lamb Weston Holdings Inc. (LW) has a current EV/EBITDA of 10.35. The 5-year average EV/EBITDA is 12.85. The thresholds are as follows: Strongly Undervalued below 7.53, Undervalued between 7.53 and 10.19, Fairly Valued between 15.51 and 10.19, Overvalued between 15.51 and 18.16, and Strongly Overvalued above 18.16. The current Forward EV/EBITDA of 10.35 falls within the Historic Trend Line -Fairly Valued range.
16.10
EV/EBIT
Lamb Weston Holdings Inc. (LW) has a current EV/EBIT of 16.10. The 5-year average EV/EBIT is 18.68. The thresholds are as follows: Strongly Undervalued below 8.66, Undervalued between 8.66 and 13.67, Fairly Valued between 23.69 and 13.67, Overvalued between 23.69 and 28.70, and Strongly Overvalued above 28.70. The current Forward EV/EBIT of 16.10 falls within the Historic Trend Line -Fairly Valued range.
1.18
PS
Lamb Weston Holdings Inc. (LW) has a current PS of 1.18. The 5-year average PS is 2.14. The thresholds are as follows: Strongly Undervalued below 1.05, Undervalued between 1.05 and 1.59, Fairly Valued between 2.68 and 1.59, Overvalued between 2.68 and 3.22, and Strongly Overvalued above 3.22. The current Forward PS of 1.18 falls within the Undervalued range.
7.41
P/OCF
Lamb Weston Holdings Inc. (LW) has a current P/OCF of 7.41. The 5-year average P/OCF is 14.58. The thresholds are as follows: Strongly Undervalued below 4.66, Undervalued between 4.66 and 9.62, Fairly Valued between 19.54 and 9.62, Overvalued between 19.54 and 24.50, and Strongly Overvalued above 24.50. The current Forward P/OCF of 7.41 falls within the Undervalued range.
20.03
P/FCF
Lamb Weston Holdings Inc. (LW) has a current P/FCF of 20.03. The 5-year average P/FCF is 58.86. The thresholds are as follows: Strongly Undervalued below -218.88, Undervalued between -218.88 and -80.01, Fairly Valued between 197.73 and -80.01, Overvalued between 197.73 and 336.60, and Strongly Overvalued above 336.60. The current Forward P/FCF of 20.03 falls within the Historic Trend Line -Fairly Valued range.
Lamb Weston Holdings Inc (LW) has a current Price-to-Book (P/B) ratio of 4.49. Compared to its 3-year average P/B ratio of 11.52 , the current P/B ratio is approximately -61.06% higher. Relative to its 5-year average P/B ratio of 17.27, the current P/B ratio is about -74.03% higher. Lamb Weston Holdings Inc (LW) has a Forward Free Cash Flow (FCF) yield of approximately 2.95%. Compared to its 3-year average FCF yield of 0.02%, the current FCF yield is approximately 17848.38% lower. Relative to its 5-year average FCF yield of 1.19% , the current FCF yield is about 148.06% lower.
4.38
P/B
Median3y
11.52
Median5y
17.27
3.02
FCF Yield
Median3y
0.02
Median5y
1.19
Competitors Valuation Multiple
The average P/S ratio for LW's competitors is 1.68, providing a benchmark for relative valuation. Lamb Weston Holdings Inc Corp (LW) exhibits a P/S ratio of 1.18, which is -30.13% above the industry average. Given its robust revenue growth of 3.96%, 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 LW decreased by 11.76% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.61B to 1.68B.
The secondary factor is the P/E Change, contributed -4.54%to the performance.
Overall, the performance of LW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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