Conagra Brands, Inc.

DB:CAO Stock Report

Market Cap: €12.6b

Conagra Brands Valuation

Is CAO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CAO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAO (€26.22) is trading below our estimate of fair value (€61.38)

Significantly Below Fair Value: CAO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAO?

Key metric: As CAO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CAO. This is calculated by dividing CAO's market cap by their current earnings.
What is CAO's PE Ratio?
PE Ratio26.5x
EarningsUS$494.30m
Market CapUS$13.09b

Price to Earnings Ratio vs Peers

How does CAO's PE Ratio compare to its peers?

The above table shows the PE ratio for CAO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.4x
SZU Südzucker
6.8x-10.2%€2.3b
SSH Südwestdeutsche Salzwerke
15.8xn/a€630.5m
NLM FRoSTA
12.2xn/a€415.6m
SMB Schwälbchen Molkerei Jakob Berz
6.7xn/a€55.8m
CAO Conagra Brands
26.5x15.5%€13.1b

Price-To-Earnings vs Peers: CAO is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does CAO's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CAO 26.5xIndustry Avg. 13.4xNo. of Companies17PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CAO is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the European Food industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is CAO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: CAO is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CAO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€26.22
€29.70
+13.3%
6.4%€34.20€26.60n/a17
Nov ’25€26.46
€28.98
+9.5%
6.5%€33.25€25.86n/a17
Oct ’25€28.89
€28.13
-2.6%
7.5%€32.33€25.15n/a17
Sep ’25€28.07
€27.70
-1.3%
7.7%€32.57€24.43n/a17
Aug ’25€27.93
€27.61
-1.1%
5.5%€30.28€24.78n/a16
Jul ’25€26.74
€29.55
+10.5%
4.8%€31.74€27.07n/a16
Jun ’25€26.66
€29.64
+11.2%
4.9%€31.69€27.03n/a17
May ’25€28.69
€29.68
+3.5%
4.8%€31.80€27.12n/a18
Apr ’25€27.35
€27.65
+1.1%
4.5%€30.45€25.84n/a18
Mar ’25€25.55
€27.65
+8.2%
4.5%€30.45€25.84n/a18
Feb ’25€27.05
€27.62
+2.1%
4.5%€30.36€25.76n/a19
Jan ’25€25.55
€27.96
+9.4%
7.3%€33.63€25.45n/a17
Dec ’24€25.80
€29.07
+12.7%
8.0%€35.05€26.52n/a16
Nov ’24€25.30
€29.07
+14.9%
8.0%€35.05€26.52€26.4616
Oct ’24€25.75
€34.00
+32.0%
11.0%€44.03€28.40€28.8916
Sep ’24€27.10
€34.76
+28.3%
7.1%€43.03€32.39€28.0715
Aug ’24€29.50
€34.41
+16.6%
7.2%€42.07€31.67€27.9316
Jul ’24€30.80
€38.67
+25.5%
7.5%€42.78€33.12€26.7416
Jun ’24€31.95
€39.46
+23.5%
7.0%€43.22€34.39€26.6616
May ’24€34.30
€38.70
+12.8%
6.8%€41.93€33.73€28.6916
Apr ’24€34.42
€38.17
+10.9%
9.2%€44.25€32.27€27.3516
Mar ’24€33.30
€39.09
+17.4%
9.5%€45.27€33.01€25.5517
Feb ’24€33.40
€38.63
+15.7%
8.9%€44.24€32.26€27.0517
Jan ’24€35.84
€36.11
+0.8%
8.3%€42.17€31.86€25.5517
Dec ’23€36.37
€36.35
-0.03%
7.5%€40.69€31.97€25.8017
Nov ’23€37.07
€36.58
-1.3%
6.8%€41.66€32.73€25.3016

Analyst Forecast: Target price is less than 20% higher than the current share price.

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