TreeHouse Foods, Inc.

DB:T4H Stock Report

Market Cap: €1.7b

TreeHouse Foods Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 (€33.6) is trading below our estimate of fair value (€92.11)

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?

Key metric: As T4H is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for T4H. This is calculated by dividing T4H's market cap by their current revenue.
What is T4H's PS Ratio?
PS Ratio0.5x
SalesUS$3.36b
Market CapUS$1.81b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for T4H vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
SZU Südzucker
0.2x0.5%€2.3b
SSH Südwestdeutsche Salzwerke
1.8xn/a€588.4m
NLM FRoSTA
0.7xn/a€405.3m
SMB Schwälbchen Molkerei Jakob Berz
0.3xn/a€51.9m
T4H TreeHouse Foods
0.5x5.1%€1.8b

Price-To-Sales vs Peers: T4H is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

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

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
T4H 0.5xIndustry Avg. 0.7xNo. of Companies48PS00.81.62.43.24+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: T4H is good value based on its Price-To-Sales Ratio (0.5x) compared to the European Food industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is T4H's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

T4H PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: T4H is expensive based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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€33.60
€31.66
-5.8%
9.9%€38.00€28.50n/a9
Nov ’25€33.40
€35.74
+7.0%
7.4%€39.42€31.36n/a9
Oct ’25€37.60
€35.74
-5.0%
7.4%€39.42€31.36n/a9
Sep ’25€36.60
€35.74
-2.4%
7.4%€39.42€31.36n/a9
Aug ’25€37.20
€34.53
-7.2%
4.6%€37.92€32.37n/a9
Jul ’25€34.00
€34.46
+1.4%
5.4%€38.19€31.67n/a9
Jun ’25€32.60
€34.58
+6.1%
6.3%€38.06€31.56n/a8
May ’25€34.60
€36.01
+4.1%
7.2%€40.22€31.80n/a8
Apr ’25€36.20
€35.54
-1.8%
8.2%€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€42.39€33.407
Oct ’24€41.20
€49.40
+19.9%
8.1%€54.99€41.94€37.606
Sep ’24€42.80
€50.47
+17.9%
4.7%€54.54€48.07€36.605
Aug ’24€46.80
€52.26
+11.7%
6.0%€57.50€48.52€37.206
Jul ’24€46.80
€53.36
+14.0%
5.6%€58.38€49.26€34.006
Jun ’24€44.20
€52.52
+18.8%
7.3%€58.28€47.36€32.606
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

Analyst Forecast: Target price is lower than the current share price.

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