MKC Relative Valuation
MKC'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, MKC is overvalued; if below, it's undervalued.
Historical Valuation
McCormick & Company Inc (MKC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.54 is considered Undervalued compared with the five-year average of 27.61. The fair price of McCormick & Company Inc (MKC) is between 70.08 to 90.14 according to relative valuation methord. Compared to the current price of 63.45 USD , McCormick & Company Inc is Undervalued By 9.45%.
Relative Value
Fair Zone
70.08-90.14
Current Price：63.45
9.45%
Undervalued
20.32
PE
1Y
3Y
5Y
Trailing
Forward
14.80
EV/EBITDA
McCormick & Company Inc. (MKC) has a current EV/EBITDA of 14.80. The 5-year average EV/EBITDA is 20.28. The thresholds are as follows: Strongly Undervalued below 15.03, Undervalued between 15.03 and 17.65, Fairly Valued between 22.90 and 17.65, Overvalued between 22.90 and 25.52, and Strongly Overvalued above 25.52. The current Forward EV/EBITDA of 14.80 falls within the Strongly Undervalued range.
17.90
EV/EBIT
McCormick & Company Inc. (MKC) has a current EV/EBIT of 17.90. The 5-year average EV/EBIT is 24.21. The thresholds are as follows: Strongly Undervalued below 17.97, Undervalued between 17.97 and 21.09, Fairly Valued between 27.33 and 21.09, Overvalued between 27.33 and 30.45, and Strongly Overvalued above 30.45. The current Forward EV/EBIT of 17.90 falls within the Strongly Undervalued range.
2.37
PS
McCormick & Company Inc. (MKC) has a current PS of 2.37. The 5-year average PS is 3.25. The thresholds are as follows: Strongly Undervalued below 2.31, Undervalued between 2.31 and 2.78, Fairly Valued between 3.72 and 2.78, Overvalued between 3.72 and 4.20, and Strongly Overvalued above 4.20. The current Forward PS of 2.37 falls within the Undervalued range.
14.90
P/OCF
McCormick & Company Inc. (MKC) has a current P/OCF of 14.90. The 5-year average P/OCF is 19.36. The thresholds are as follows: Strongly Undervalued below 11.03, Undervalued between 11.03 and 15.20, Fairly Valued between 23.53 and 15.20, Overvalued between 23.53 and 27.70, and Strongly Overvalued above 27.70. The current Forward P/OCF of 14.90 falls within the Undervalued range.
18.49
P/FCF
McCormick & Company Inc. (MKC) has a current P/FCF of 18.49. The 5-year average P/FCF is 25.45. The thresholds are as follows: Strongly Undervalued below 12.64, Undervalued between 12.64 and 19.05, Fairly Valued between 31.86 and 19.05, Overvalued between 31.86 and 38.27, and Strongly Overvalued above 38.27. The current Forward P/FCF of 18.49 falls within the Undervalued range.
McCormick & Company Inc (MKC) has a current Price-to-Book (P/B) ratio of 2.99. Compared to its 3-year average P/B ratio of 3.89 , the current P/B ratio is approximately -23.12% higher. Relative to its 5-year average P/B ratio of 4.51, the current P/B ratio is about -33.65% higher. McCormick & Company Inc (MKC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.56%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.14% , the current FCF yield is about -100.00% lower.
2.96
P/B
Median3y
3.89
Median5y
4.51
3.81
FCF Yield
Median3y
3.56
Median5y
3.14
Competitors Valuation Multiple
The average P/S ratio for MKC's competitors is , providing a benchmark for relative valuation. McCormick & Company Inc Corp (MKC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.68%, 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 MKC decreased by 16.79% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.68B to 1.72B.
The secondary factor is the Margin Expansion, contributed -1.58%to the performance.
Overall, the performance of MKC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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