Mondelez (MDLZ): Assessing Valuation as Shares Face Recent Downturn

Mondelez International (MDLZ) shares have been under pressure recently, with the stock declining about 9% over the past month. Investor sentiment appears cautious, even though the company’s annual revenue and net income have grown at solid rates.

See our latest analysis for Mondelez International.

The past year has seen momentum fade for Mondelez International, with the latest share price at $56.86 and a 1-year total shareholder return of -9.2%. Despite periods of revenue and earnings growth, fading investor risk appetite and renewed market caution have weighed on the stock’s trajectory in recent months.

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With the stock trading well below analyst targets and annual earnings growth still strong, is Mondelez International now undervalued relative to its prospects, or are the market’s doubts already reflecting future risks and expectations?

Most Popular Narrative: 17.7% Undervalued

Mondelez International's most followed narrative sees its fair value at $69.07, significantly higher than the last close price of $56.86. This creates a notable gap between analyst expectations and current market sentiment.

The company is implementing a strategic growth agenda that includes reinvesting in brands, expanding distribution, and strengthening market presence, which should positively impact revenue growth and market share. Mondelez’s focus on innovative brand activations and product collaborations, like the Oreo and Post Malone partnership and Cadbury Dairy Milk with Lotus Bakeries, are expected to enhance consumer engagement and drive revenue growth.

Read the complete narrative.

Want to uncover the bold strategy influencing the valuation gap? There is a surprising mix of global brand moves, cost targets, and game-changing expansion plans behind this sharp fair value prediction. Discover the projections and key assumptions that have analysts expecting a much higher price and see what could drive the next big move for Mondelez International.

Result: Fair Value of $69.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent high cocoa costs and weaker consumer demand in key regions may undermine earnings progress and challenge the undervaluation thesis.

Find out about the key risks to this Mondelez International narrative.

Build Your Own Mondelez International Narrative

If you see things differently or prefer charting your own path, you can dive into the data and craft your own narrative in just a few minutes. Do it your way

A great starting point for your Mondelez International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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