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 19.14 is considered Fairly compared with the five-year average of 21.85. The fair price of Lamb Weston Holdings Inc (LW) is between 48.50 to 82.11 according to relative valuation methord.
Relative Value
Fair Zone
48.50-82.11
Current Price：60.49
Fair
18.91
PE
1Y
3Y
5Y
Trailing
Forward
10.25
EV/EBITDA
Lamb Weston Holdings Inc. (LW) has a current EV/EBITDA of 10.25. The 5-year average EV/EBITDA is 12.52. The thresholds are as follows: Strongly Undervalued below 7.22, Undervalued between 7.22 and 9.87, Fairly Valued between 15.17 and 9.87, Overvalued between 15.17 and 17.83, and Strongly Overvalued above 17.83. The current Forward EV/EBITDA of 10.25 falls within the Historic Trend Line -Fairly Valued range.
15.68
EV/EBIT
Lamb Weston Holdings Inc. (LW) has a current EV/EBIT of 15.68. The 5-year average EV/EBIT is 18.20. The thresholds are as follows: Strongly Undervalued below 8.36, Undervalued between 8.36 and 13.28, Fairly Valued between 23.13 and 13.28, Overvalued between 23.13 and 28.05, and Strongly Overvalued above 28.05. The current Forward EV/EBIT of 15.68 falls within the Historic Trend Line -Fairly Valued range.
1.29
PS
Lamb Weston Holdings Inc. (LW) has a current PS of 1.29. The 5-year average PS is 2.04. The thresholds are as follows: Strongly Undervalued below 0.92, Undervalued between 0.92 and 1.48, Fairly Valued between 2.60 and 1.48, Overvalued between 2.60 and 3.16, and Strongly Overvalued above 3.16. The current Forward PS of 1.29 falls within the Undervalued range.
8.83
P/OCF
Lamb Weston Holdings Inc. (LW) has a current P/OCF of 8.83. The 5-year average P/OCF is 14.01. The thresholds are as follows: Strongly Undervalued below 3.81, Undervalued between 3.81 and 8.91, Fairly Valued between 19.11 and 8.91, Overvalued between 19.11 and 24.22, and Strongly Overvalued above 24.22. The current Forward P/OCF of 8.83 falls within the Undervalued range.
18.55
P/FCF
Lamb Weston Holdings Inc. (LW) has a current P/FCF of 18.55. The 5-year average P/FCF is 58.53. The thresholds are as follows: Strongly Undervalued below -219.38, Undervalued between -219.38 and -80.43, Fairly Valued between 197.48 and -80.43, Overvalued between 197.48 and 336.44, and Strongly Overvalued above 336.44. The current Forward P/FCF of 18.55 falls within the Historic Trend Line -Fairly Valued range.
Lamb Weston Holdings Inc (LW) has a current Price-to-Book (P/B) ratio of 4.71. Compared to its 3-year average P/B ratio of 9.25 , the current P/B ratio is approximately -49.12% higher. Relative to its 5-year average P/B ratio of 15.41, the current P/B ratio is about -69.43% higher. Lamb Weston Holdings Inc (LW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.53%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.27% , the current FCF yield is about -100.00% lower.
4.65
P/B
Median3y
9.25
Median5y
15.41
5.93
FCF Yield
Median3y
0.53
Median5y
1.27
Competitors Valuation Multiple
The average P/S ratio for LW's competitors is , providing a benchmark for relative valuation. Lamb Weston Holdings Inc Corp (LW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 0.31%, 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 9.40% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.56 to 28.77.
The secondary factor is the Revenue Growth, contributed 0.31%to the performance.
Overall, the performance of LW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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