TreeHouse Foods Valuation

Is T4H undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 T4H when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: T4H (€35) is trading below our estimate of fair value (€256.83)

Significantly Below Fair Value: T4H is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for T4H?

Other financial metrics that can be useful for relative valuation.

T4H key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA9.6x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does T4H's PE Ratio compare to its peers?

The above table shows the PE ratio for T4H vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.3x
SZU Südzucker
4.3x-45.2%€2.7b
SSH Südwestdeutsche Salzwerke
20.1xn/a€651.5m
NLM FRoSTA
13.6xn/a€463.3m
SMB Schwälbchen Molkerei Jakob Berz
83.3xn/a€55.9m
T4H TreeHouse Foods
34x33.8%€2.0b

Price-To-Earnings vs Peers: T4H is expensive based on its Price-To-Earnings Ratio (34x) compared to the peer average (30.3x).


Price to Earnings Ratio vs Industry

How does T4H's PE Ratio compare vs other companies in the European Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: T4H is expensive based on its Price-To-Earnings Ratio (34x) compared to the European Food industry average (15.3x).


Price to Earnings Ratio vs Fair Ratio

What is T4H'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.

T4H PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34x
Fair PE Ratio43.3x

Price-To-Earnings vs Fair Ratio: T4H is good value based on its Price-To-Earnings Ratio (34x) compared to the estimated Fair Price-To-Earnings Ratio (43.3x).


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 T4H forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€35.00
€36.48
+4.2%
8.5%€41.15€31.80n/a8
Apr ’25€36.20
€36.00
-0.6%
9.3%€41.40€31.28n/a8
Mar ’25€33.00
€36.83
+11.6%
8.2%€41.58€32.34n/a7
Feb ’25€39.00
€39.52
+1.3%
6.6%€43.82€34.69n/a7
Jan ’25€37.40
€39.39
+5.3%
6.7%€43.97€34.81n/a7
Dec ’24€37.20
€40.11
+7.8%
6.2%€43.99€35.56n/a7
Nov ’24€39.20
€47.23
+20.5%
9.8%€55.57€42.39n/a7
Oct ’24€41.20
€49.40
+19.9%
8.1%€54.99€41.94n/a6
Sep ’24€42.80
€50.47
+17.9%
4.7%€54.54€48.07n/a5
Aug ’24€46.80
€52.26
+11.7%
6.0%€57.50€48.52n/a6
Jul ’24€46.80
€53.36
+14.0%
5.6%€58.38€49.26n/a6
Jun ’24€44.20
€52.52
+18.8%
7.3%€58.28€47.36n/a6
May ’24€47.80
€50.59
+5.8%
7.8%€54.69€44.66€34.606
Apr ’24€45.80
€50.53
+10.3%
9.5%€55.97€43.84€36.206
Mar ’24€46.00
€49.50
+7.6%
8.4%€56.21€44.03€33.006
Feb ’24€44.40
€47.38
+6.7%
10.1%€55.38€43.38€39.006
Jan ’24€45.60
€47.97
+5.2%
8.6%€56.62€44.35€37.406
Dec ’23€47.20
€50.13
+6.2%
9.1%€59.56€46.66€37.206
Nov ’23€50.50
€50.68
+0.4%
8.9%€60.21€47.16€39.206
Oct ’23€42.80
€50.45
+17.9%
10.0%€59.94€44.96€41.206
Sep ’23€46.20
€48.38
+4.7%
11.8%€58.45€40.91€42.806
Aug ’23€42.20
€43.40
+2.8%
10.9%€49.93€37.20€46.806
Jul ’23€39.60
€40.70
+2.8%
10.0%€47.88€36.39€46.806
Jun ’23€38.40
€39.16
+2.0%
13.6%€47.72€32.75€44.207
May ’23€31.60
€36.40
+15.2%
11.5%€45.62€32.26€47.807

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


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