MGPI Valuation

MGP Ingredients Inc

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25.350

+0.54(2.177%)1D

MGPI Relative Valuation

MGPI'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, MGPI is overvalued; if below, it's undervalued.

Historical Valuation

MGP Ingredients Inc (MGPI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.35 is considered Undervalued compared with the five-year average of 17.42. The fair price of MGP Ingredients Inc (MGPI) is between 30.19 to 49.92 according to relative valuation methord. Compared to the current price of 25.35 USD , MGP Ingredients Inc is Undervalued By 16.02%.

Relative Value

Fair Zone

30.19-49.92

Current Price：25.35

16.02%

Undervalued

10.35

Trailing

Forward

7.41

EV/EBITDA

MGP Ingredients Inc. (MGPI) has a current EV/EBITDA of 7.41. The 5-year average EV/EBITDA is 11.74. The thresholds are as follows: Strongly Undervalued below 6.16, Undervalued between 6.16 and 8.95, Fairly Valued between 14.53 and 8.95, Overvalued between 14.53 and 17.32, and Strongly Overvalued above 17.32. The current Forward EV/EBITDA of 7.41 falls within the Undervalued range.

10.16

EV/EBIT

MGP Ingredients Inc. (MGPI) has a current EV/EBIT of 10.16. The 5-year average EV/EBIT is 14.16. The thresholds are as follows: Strongly Undervalued below 7.24, Undervalued between 7.24 and 10.70, Fairly Valued between 17.62 and 10.70, Overvalued between 17.62 and 21.08, and Strongly Overvalued above 21.08. The current Forward EV/EBIT of 10.16 falls within the Undervalued range.

25.35

MGP Ingredients Inc. (MGPI) has a current PS of 25.35. The 5-year average PS is 2.47. The thresholds are as follows: Strongly Undervalued below -1.52, Undervalued between -1.52 and 0.47, Fairly Valued between 4.46 and 0.47, Overvalued between 4.46 and 6.46, and Strongly Overvalued above 6.46. The current Forward PS of 25.35 falls within the Strongly Overvalued range.

4.33

P/OCF

MGP Ingredients Inc. (MGPI) has a current P/OCF of 4.33. The 5-year average P/OCF is 16.30. The thresholds are as follows: Strongly Undervalued below -0.80, Undervalued between -0.80 and 7.75, Fairly Valued between 24.85 and 7.75, Overvalued between 24.85 and 33.40, and Strongly Overvalued above 33.40. The current Forward P/OCF of 4.33 falls within the Undervalued range.

8.69

P/FCF

MGP Ingredients Inc. (MGPI) has a current P/FCF of 8.69. The 5-year average P/FCF is 42.08. The thresholds are as follows: Strongly Undervalued below -53.25, Undervalued between -53.25 and -5.59, Fairly Valued between 89.74 and -5.59, Overvalued between 89.74 and 137.40, and Strongly Overvalued above 137.40. The current Forward P/FCF of 8.69 falls within the Historic Trend Line -Fairly Valued range.

MGP Ingredients Inc (MGPI) has a current Price-to-Book (P/B) ratio of 0.63. Compared to its 3-year average P/B ratio of 1.97 , the current P/B ratio is approximately -68.01% higher. Relative to its 5-year average P/B ratio of 2.44, the current P/B ratio is about -74.18% higher. MGP Ingredients Inc (MGPI) has a Forward Free Cash Flow (FCF) yield of approximately 0.12%. Compared to its 3-year average FCF yield of 3.43%, the current FCF yield is approximately -96.64% lower. Relative to its 5-year average FCF yield of 3.19% , the current FCF yield is about -96.39% lower.

0.63

P/B

Median3y

1.97

Median5y

2.44

0.12

FCF Yield

Median3y

3.43

Median5y

3.19

Competitors Valuation Multiple

The average P/S ratio for MGPI's competitors is 10.11, providing a benchmark for relative valuation. MGP Ingredients Inc Corp (MGPI) exhibits a P/S ratio of 25.35, which is 150.69% above the industry average. Given its robust revenue growth of -18.92%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Village Farms International Inc

2.96

-35.02%

333.43M

Performance Decomposition

Market capitalization of MGPI decreased by 45.22% over the past 1 year. The primary factor behind the change was an increase in P/E Change from -38.57 to -36.23.

The secondary factor is the Revenue Growth, contributed -18.92%to the performance.

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

-18.92%

161.46M → 130.91M

Revenue Growth

-20.23%

14.78 → 11.79

Margin Expansion

-6.07%

-38.57 → -36.23

P/E Change

-45.22%