McCormick & Company, Incorporated

BMV:MKCV * Stock Report

Market Cap: Mex$418.7b

McCormick Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: MKCV * (MX$1365.08) is trading above our estimate of fair value (MX$836.37)

Significantly Below Fair Value: MKCV * is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MKCV *. This is calculated by dividing MKCV *'s market cap by their current earnings.
What is MKCV *'s PE Ratio?
PE Ratio36.4x
EarningsUS$666.20m
Market CapUS$24.32b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MKCV * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.5x
BIMBO A Grupo Bimbo. de
20.1x20.9%Mex$255.4b
GRUMA B Gruma. de
12.3x7.0%Mex$123.8b
BACHOCO B Industrias Bachoco. de
14xn/aMex$50.9b
BAFAR B Grupo Bafar. de
11.4xn/aMex$36.3b
MKCV * McCormick
36.4x9.4%Mex$24.3b

Price-To-Earnings vs Peers: MKCV * is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the peer average (13.3x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies13PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MKCV * is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the South American Food industry average (10.6x).


Price to Earnings Ratio vs Fair Ratio

What is MKCV *'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.

MKCV * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.4x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: MKCV * is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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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