LW PE Ratio & Valuation,Is LW Overvalued

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 18.71 is considered Fairly compared with the five-year average of 21.79. The fair price of Lamb Weston Holdings Inc (LW) is between 48.62 to 82.41 according to relative valuation methord.

Relative Value

Fair Zone

48.62-82.41

Current Price：59.56

Fair

18.71

10.21

EV/EBITDA

Lamb Weston Holdings Inc. (LW) has a current EV/EBITDA of 10.21. The 5-year average EV/EBITDA is 12.49. The thresholds are as follows: Strongly Undervalued below 7.20, Undervalued between 7.20 and 9.84, Fairly Valued between 15.14 and 9.84, Overvalued between 15.14 and 17.78, and Strongly Overvalued above 17.78. The current Forward EV/EBITDA of 10.21 falls within the Historic Trend Line -Fairly Valued range.

15.74

EV/EBIT

Lamb Weston Holdings Inc. (LW) has a current EV/EBIT of 15.74. The 5-year average EV/EBIT is 18.16. The thresholds are as follows: Strongly Undervalued below 8.34, Undervalued between 8.34 and 13.25, Fairly Valued between 23.07 and 13.25, Overvalued between 23.07 and 27.98, and Strongly Overvalued above 27.98. The current Forward EV/EBIT of 15.74 falls within the Historic Trend Line -Fairly Valued range.

1.28

Lamb Weston Holdings Inc. (LW) has a current PS of 1.28. The 5-year average PS is 2.03. The thresholds are as follows: Strongly Undervalued below 0.91, Undervalued between 0.91 and 1.47, Fairly Valued between 2.58 and 1.47, Overvalued between 2.58 and 3.14, and Strongly Overvalued above 3.14. The current Forward PS of 1.28 falls within the Undervalued range.

8.71

P/OCF

Lamb Weston Holdings Inc. (LW) has a current P/OCF of 8.71. The 5-year average P/OCF is 13.95. The thresholds are as follows: Strongly Undervalued below 3.75, Undervalued between 3.75 and 8.85, Fairly Valued between 19.06 and 8.85, Overvalued between 19.06 and 24.16, and Strongly Overvalued above 24.16. The current Forward P/OCF of 8.71 falls within the Undervalued range.

18.30

P/FCF

Lamb Weston Holdings Inc. (LW) has a current P/FCF of 18.30. The 5-year average P/FCF is 58.42. The thresholds are as follows: Strongly Undervalued below -219.54, Undervalued between -219.54 and -80.56, Fairly Valued between 197.40 and -80.56, Overvalued between 197.40 and 336.38, and Strongly Overvalued above 336.38. The current Forward P/FCF of 18.30 falls within the Historic Trend Line -Fairly Valued range.

Lamb Weston Holdings Inc (LW) has a current Price-to-Book (P/B) ratio of 4.64. Compared to its 3-year average P/B ratio of 9.07 , the current P/B ratio is approximately -48.78% higher. Relative to its 5-year average P/B ratio of 15.29, the current P/B ratio is about -69.62% higher. Lamb Weston Holdings Inc (LW) has a Forward Free Cash Flow (FCF) yield of approximately 6.02%. Compared to its 3-year average FCF yield of 0.58%, the current FCF yield is approximately 937.93% lower. Relative to its 5-year average FCF yield of 1.28% , the current FCF yield is about 369.05% lower.

4.64

P/B

Median3y

9.07

Median5y

15.29

6.02

FCF Yield

Median3y

0.58

Median5y

1.28

Competitors Valuation Multiple

The average P/S ratio for LW's competitors is 0.94, providing a benchmark for relative valuation. Lamb Weston Holdings Inc Corp (LW) exhibits a P/S ratio of 1.28, which is 35.25% above the industry average. Given its robust revenue growth of 0.31%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LW decreased by 9.55% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.55 to 28.72.

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

39.75%

20.55 → 28.72

P/E Change

-9.55%

65.96 → 59.66

Mkt Cap Growth

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Frequently Asked Questions

Is Lamb Weston Holdings Inc (LW) currently overvalued or undervalued?

What is Lamb Weston Holdings Inc (LW) fair value?

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. The fair price of Lamb Weston Holdings Inc (LW) is between 48.62 to 82.41 according to relative valuation methord.

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

What is the current P/B ratio for Lamb Weston Holdings Inc (LW) as of Dec 16 2025?

As of Dec 16 2025, Lamb Weston Holdings Inc (LW) has a P/B ratio of 4.64. This indicates that the market values LW at 4.64 times its book value.

What is the current FCF Yield for Lamb Weston Holdings Inc (LW) as of Dec 16 2025?

As of Dec 16 2025, Lamb Weston Holdings Inc (LW) has a FCF Yield of 6.02%. This means that for every dollar of Lamb Weston Holdings Inc’s market capitalization, the company generates 6.02 cents in free cash flow.

What is the current Forward P/E ratio for Lamb Weston Holdings Inc (LW) as of Dec 16 2025?

As of Dec 16 2025, Lamb Weston Holdings Inc (LW) has a Forward P/E ratio of 18.71. This means the market is willing to pay $18.71 for every dollar of Lamb Weston Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Lamb Weston Holdings Inc (LW) as of Dec 16 2025?

As of Dec 16 2025, Lamb Weston Holdings Inc (LW) has a Forward P/S ratio of 1.28. This means the market is valuing LW at $1.28 for every dollar of expected revenue over the next 12 months.

LW Valuation