Grupo Herdez. de Valuation

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

HERDEZ * (MX$52.93) is trading below our estimate of [[fair value]] (MX$127.44)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: HERDEZ * (MX$52.93) is trading below our estimate of fair value (MX$127.44)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HERDEZ *. This is calculated by dividing HERDEZ *'s market cap by their current preferred multiple.
What is HERDEZ *'s n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	Mex$17.15b

HERDEZ * 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/Revenue	0.9x
Enterprise Value/EBITDA	5.6x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does HERDEZ *'s PE Ratio compare to its peers?

The above table shows the PE ratio for HERDEZ * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.3x
BAFAR B Grupo Bafar. de	11.4x	n/a	Mex$36.3b
BACHOCO B Industrias Bachoco. de	14x	n/a	Mex$50.9b
ACCELSA B Accel. de	20.3x	n/a	Mex$4.3b
MINSA B Grupo Minsa. de	15.4x	n/a	Mex$3.0b
HERDEZ * Grupo Herdez. de	12x	15.0%	Mex$17.1b

Price-To-Earnings vs Peers: HERDEZ * is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does HERDEZ *'s PE Ratio compare vs other companies in the South American Food Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	9.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	9.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: HERDEZ * is expensive based on its Price-To-Earnings Ratio (12x) compared to the South American Food industry average (10.4x).

Price to Earnings Ratio vs Fair Ratio

What is HERDEZ *'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.

HERDEZ * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12x
Fair PE Ratio	15.6x

Price-To-Earnings vs Fair Ratio: HERDEZ * is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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 HERDEZ * forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	Mex$52.93	Mex$63.67 +20.3%	14.8%	Mex$75.00	Mex$52.00	n/a	3
Oct ’25	Mex$54.53	Mex$63.67 +16.8%	14.8%	Mex$75.00	Mex$52.00	n/a	3
Sep ’25	Mex$57.37	Mex$63.67 +11.0%	14.8%	Mex$75.00	Mex$52.00	n/a	3
Aug ’25	Mex$54.30	Mex$63.67 +17.2%	14.8%	Mex$75.00	Mex$52.00	n/a	3
Jul ’25	Mex$53.53	Mex$63.67 +18.9%	14.8%	Mex$75.00	Mex$52.00	n/a	3
Jun ’25	Mex$51.39	Mex$61.50 +19.7%	14.6%	Mex$75.00	Mex$52.00	n/a	4
May ’25	Mex$48.98	Mex$61.50 +25.6%	14.6%	Mex$75.00	Mex$52.00	n/a	4
Apr ’25	Mex$45.25	Mex$63.50 +40.3%	11.6%	Mex$75.00	Mex$55.00	n/a	4
Mar ’25	Mex$46.89	Mex$63.50 +35.4%	11.6%	Mex$75.00	Mex$55.00	n/a	4
Feb ’25	Mex$44.62	Mex$60.75 +36.1%	14.2%	Mex$75.00	Mex$53.00	n/a	4
Jan ’25	Mex$46.10	Mex$60.75 +31.8%	14.2%	Mex$75.00	Mex$53.00	n/a	4
Dec ’24	Mex$44.63	Mex$60.75 +36.1%	14.2%	Mex$75.00	Mex$53.00	n/a	4
Nov ’24	Mex$40.85	Mex$60.75 +48.7%	14.2%	Mex$75.00	Mex$53.00	n/a	4
Oct ’24	Mex$40.98	Mex$60.75 +48.2%	14.2%	Mex$75.00	Mex$53.00	Mex$54.53	4
Sep ’24	Mex$42.83	Mex$60.75 +41.8%	14.2%	Mex$75.00	Mex$53.00	Mex$57.37	4
Aug ’24	Mex$48.43	Mex$60.75 +25.4%	14.2%	Mex$75.00	Mex$53.00	Mex$54.30	4
Jul ’24	Mex$44.43	Mex$60.75 +36.7%	14.2%	Mex$75.00	Mex$53.00	Mex$53.53	4
Jun ’24	Mex$44.36	Mex$59.38 +33.8%	16.5%	Mex$75.00	Mex$49.50	Mex$51.39	4
May ’24	Mex$47.89	Mex$59.38 +24.0%	16.5%	Mex$75.00	Mex$49.50	Mex$48.98	4
Apr ’24	Mex$46.47	Mex$55.63 +19.7%	8.2%	Mex$60.00	Mex$49.50	Mex$45.25	4
Mar ’24	Mex$44.24	Mex$55.63 +25.7%	8.2%	Mex$60.00	Mex$49.50	Mex$46.89	4
Feb ’24	Mex$45.40	Mex$50.83 +12.0%	3.0%	Mex$53.00	Mex$49.50	Mex$44.62	3
Jan ’24	Mex$43.65	Mex$50.83 +16.5%	3.0%	Mex$53.00	Mex$49.50	Mex$46.10	3
Dec ’23	Mex$39.82	Mex$52.38 +31.5%	8.4%	Mex$60.00	Mex$49.50	Mex$44.63	4
Nov ’23	Mex$39.20	Mex$52.38 +33.6%	8.4%	Mex$60.00	Mex$49.50	Mex$40.85	4
Oct ’23	Mex$37.44	Mex$52.38 +39.9%	8.4%	Mex$60.00	Mex$49.50	Mex$40.98	4

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.