LW Valuation

Lamb Weston Holdings Inc

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62.420

+0.53(0.856%)1D

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 19.58 is considered Fairly compared with the five-year average of 22.00. The fair price of Lamb Weston Holdings Inc (LW) is between 48.97 to 83.12 according to relative valuation methord.

Relative Value

Fair Zone

48.97-83.12

Current Price：62.42

Fair

19.75

Trailing

Forward

10.52

EV/EBITDA

Lamb Weston Holdings Inc. (LW) has a current EV/EBITDA of 10.52. The 5-year average EV/EBITDA is 12.63. The thresholds are as follows: Strongly Undervalued below 7.29, Undervalued between 7.29 and 9.96, Fairly Valued between 15.30 and 9.96, Overvalued between 15.30 and 17.97, and Strongly Overvalued above 17.97. The current Forward EV/EBITDA of 10.52 falls within the Historic Trend Line -Fairly Valued range.

16.08

EV/EBIT

Lamb Weston Holdings Inc. (LW) has a current EV/EBIT of 16.08. The 5-year average EV/EBIT is 18.35. The thresholds are as follows: Strongly Undervalued below 8.39, Undervalued between 8.39 and 13.37, Fairly Valued between 23.33 and 13.37, Overvalued between 23.33 and 28.31, and Strongly Overvalued above 28.31. The current Forward EV/EBIT of 16.08 falls within the Historic Trend Line -Fairly Valued range.

62.42

Lamb Weston Holdings Inc. (LW) has a current PS of 62.42. The 5-year average PS is 2.51. The thresholds are as follows: Strongly Undervalued below -7.84, Undervalued between -7.84 and -2.66, Fairly Valued between 7.69 and -2.66, Overvalued between 7.69 and 12.87, and Strongly Overvalued above 12.87. The current Forward PS of 62.42 falls within the Strongly Overvalued range.

9.16

P/OCF

Lamb Weston Holdings Inc. (LW) has a current P/OCF of 9.16. The 5-year average P/OCF is 14.23. The thresholds are as follows: Strongly Undervalued below 4.06, Undervalued between 4.06 and 9.14, Fairly Valued between 19.32 and 9.14, Overvalued between 19.32 and 24.40, and Strongly Overvalued above 24.40. The current Forward P/OCF of 9.16 falls within the Historic Trend Line -Fairly Valued range.

19.25

P/FCF

Lamb Weston Holdings Inc. (LW) has a current P/FCF of 19.25. The 5-year average P/FCF is 59.24. The thresholds are as follows: Strongly Undervalued below -220.46, Undervalued between -220.46 and -80.61, Fairly Valued between 199.09 and -80.61, Overvalued between 199.09 and 338.95, and Strongly Overvalued above 338.95. The current Forward P/FCF of 19.25 falls within the Historic Trend Line -Fairly Valued range.

Lamb Weston Holdings Inc (LW) has a current Price-to-Book (P/B) ratio of 4.82. Compared to its 3-year average P/B ratio of 9.71 , the current P/B ratio is approximately -50.37% higher. Relative to its 5-year average P/B ratio of 15.79, the current P/B ratio is about -69.49% higher. Lamb Weston Holdings Inc (LW) has a Forward Free Cash Flow (FCF) yield of approximately 0.06%. Compared to its 3-year average FCF yield of 0.40%, the current FCF yield is approximately -85.64% lower. Relative to its 5-year average FCF yield of 1.24% , the current FCF yield is about -95.31% lower.

4.86

P/B

Median3y

9.71

Median5y

15.79

0.06

FCF Yield

Median3y

0.40

Median5y

1.24

Competitors Valuation Multiple

The average P/S ratio for LW's competitors is 74.14, providing a benchmark for relative valuation. Lamb Weston Holdings Inc Corp (LW) exhibits a P/S ratio of 62.42, which is -15.81% 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

LW.N

Lamb Weston Holdings Inc

Darling Ingredients Inc

32.53

9.99%

5.15B

Performance Decomposition

Market capitalization of LW decreased by 19.19% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.09 to 30.05.

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.

0.31%

1.65B → 1.66B

Revenue Growth

-49.61%

7.70 → 3.88

Margin Expansion

30.11%

23.09 → 30.05

P/E Change

-19.19%