McCormick & Company, Incorporated

DB:MCX0 Stock Report

Market Cap: €19.9b

McCormick Valuation

Is MCX0 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 MCX0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCX0 (€72.5) is trading below our estimate of fair value (€115.06)

Significantly Below Fair Value: MCX0 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCX0?

Key metric: As MCX0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCX0. This is calculated by dividing MCX0's market cap by their current earnings.
What is MCX0's PE Ratio?
PE Ratio26.2x
EarningsUS$792.60m
Market CapUS$20.97b

Price to Earnings Ratio vs Peers

How does MCX0's PE Ratio compare to its peers?

The above table shows the PE ratio for MCX0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
SZU Südzucker
6.5x-10.2%€2.2b
SSH Südwestdeutsche Salzwerke
14.8xn/a€588.4m
NLM FRoSTA
11.7xn/a€408.8m
SMB Schwälbchen Molkerei Jakob Berz
6.7xn/a€55.8m
MCX0 McCormick
26.2x5.8%€21.0b

Price-To-Earnings vs Peers: MCX0 is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (9.9x).


Price to Earnings Ratio vs Industry

How does MCX0's PE Ratio compare vs other companies in the European Food Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MCX0 26.2xIndustry Avg. 13.4xNo. of Companies21PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCX0 is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the European Food industry average (13.4x).


Price to Earnings Ratio vs Fair Ratio

What is MCX0'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.

MCX0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.2x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: MCX0 is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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