The Hershey Company

LSE:0J4X Stock Report

Market Cap: US$32.0b

Hershey Valuation

Is 0J4X 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 0J4X when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$187.25
Fair Value
15.7% undervalued intrinsic discount
25
Number of Analysts

Below Fair Value: 0J4X ($157.88) is trading below our estimate of fair value ($187.25)

Significantly Below Fair Value: 0J4X is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0J4X?

Key metric: As 0J4X is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0J4X. This is calculated by dividing 0J4X's market cap by their current earnings.
What is 0J4X's PE Ratio?
PE Ratio14.4x
EarningsUS$2.22b
Market CapUS$32.02b

Price to Earnings Ratio vs Peers

How does 0J4X's PE Ratio compare to its peers?

The above table shows the PE ratio for 0J4X vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.4x
ABF Associated British Foods
9.4x4.2%UK£13.8b
TATE Tate & Lyle
17.9x13.8%UK£2.8b
CWK Cranswick
23.2x8.0%UK£2.7b
PFD Premier Foods
15.1x6.6%UK£1.6b
0J4X Hershey
14.4x-6.0%US$32.0b

Price-To-Earnings vs Peers: 0J4X is good value based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

How does 0J4X's PE Ratio compare vs other companies in the European Food Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0J4X 14.4xIndustry Avg. 14.3xNo. of Companies20PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0J4X is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the European Food industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0J4X'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.

0J4X PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.4x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: 0J4X is good value based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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 0J4X forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$157.88
US$159.53
+1.0%
15.4%US$211.34US$120.00n/a25
Feb ’26US$150.58
US$169.65
+12.7%
14.4%US$222.00US$120.00n/a25
Jan ’26US$168.41
US$182.17
+8.2%
9.5%US$222.00US$150.00n/a25
Dec ’25US$176.13
US$183.65
+4.3%
9.6%US$222.00US$153.00n/a25
Nov ’25US$178.84
US$195.32
+9.2%
8.6%US$232.00US$161.00n/a25
Oct ’25US$191.64
US$201.88
+5.3%
8.0%US$232.00US$163.00n/a24
Sep ’25US$191.67
US$203.00
+5.9%
7.2%US$232.00US$179.00n/a24
Aug ’25US$196.40
US$201.96
+2.8%
6.7%US$232.00US$179.00n/a22
Jul ’25US$181.75
US$206.92
+13.8%
7.3%US$239.00US$179.00n/a23
Jun ’25US$196.47
US$206.75
+5.2%
7.9%US$239.00US$170.00n/a24
May ’25US$194.00
US$206.08
+6.2%
7.9%US$238.00US$170.00n/a24
Apr ’25US$194.77
US$209.83
+7.7%
6.5%US$238.00US$183.00n/a24
Mar ’25US$188.09
US$210.37
+11.8%
6.9%US$238.00US$183.00n/a24
Feb ’25US$197.60
US$209.24
+5.9%
8.3%US$248.00US$180.00US$150.5825
Jan ’25US$186.13
US$212.04
+13.9%
8.3%US$248.00US$180.00US$168.4124
Dec ’24US$190.35
US$215.83
+13.4%
9.2%US$250.00US$180.00US$176.1323
Nov ’24US$189.10
US$219.65
+16.2%
9.8%US$253.00US$180.00US$178.8423
Oct ’24US$199.84
US$252.27
+26.2%
8.3%US$300.00US$196.00US$191.6422
Sep ’24US$213.65
US$260.15
+21.8%
8.3%US$300.00US$196.00US$191.6720
Aug ’24US$230.53
US$261.80
+13.6%
8.8%US$300.00US$192.00US$196.4020
Jul ’24US$249.00
US$272.90
+9.6%
8.6%US$310.00US$192.00US$181.7520
Jun ’24US$259.42
US$271.45
+4.6%
8.8%US$310.00US$192.00US$196.4720
May ’24US$272.63
US$269.45
-1.2%
9.5%US$310.00US$180.00US$194.0020
Apr ’24US$254.33
US$251.75
-1.0%
8.4%US$280.00US$180.00US$194.7720
Mar ’24US$236.42
US$247.24
+4.6%
9.6%US$280.00US$169.00US$188.0921
Feb ’24US$224.60
US$238.96
+6.4%
9.2%US$270.00US$169.00US$197.6021
Analyst Price Target
Consensus Narrative from 25 Analysts
US$159.15
Fair Value
0.8% undervalued intrinsic discount
25
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/12 21:29
End of Day Share Price 2025/02/12 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Hershey Company is covered by 43 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Ishan MajumdarBaptista Research
Andrew LazarBarclays