Pilgrim's Pride Corporation

NasdaqGS:PPC Stock Report

Market Cap: US$12.2b

Pilgrim's Pride Valuation

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

Below Fair Value: PPC ($51.34) is trading below our estimate of fair value ($70.43)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PPC. This is calculated by dividing PPC's market cap by their current earnings.
What is PPC's PE Ratio?
PE Ratio12.4x
EarningsUS$985.24m
Market CapUS$12.17b

Price to Earnings Ratio vs Peers

How does PPC's PE Ratio compare to its peers?

The above table shows the PE ratio for PPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.3x
SJM J. M. Smucker
15.3x9.7%US$11.4b
CPB Campbell Soup
22.6x15.0%US$12.8b
CAG Conagra Brands
25.8x15.5%US$12.7b
LW Lamb Weston Holdings
17.4x11.9%US$10.8b
PPC Pilgrim's Pride
12.4x-11.8%US$12.2b

Price-To-Earnings vs Peers: PPC is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does PPC's PE Ratio compare vs other companies in the US Food Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GCEH Global Clean Energy Holdings
2.1xn/aUS$45.02m
SEED Origin Agritech
1.8xn/aUS$14.54m
FAMI Farmmi
1.8xn/aUS$2.81m
IDBH.F Industrias Bachoco. de
0.0002xn/aUS$59.94k
PPC 12.4xIndustry Avg. 18.9xNo. of Companies8PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PPC is good value based on its Price-To-Earnings Ratio (12.4x) compared to the US Food industry average (18.9x).

Price to Earnings Ratio vs Fair Ratio

What is PPC'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.

PPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: PPC is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

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 PPC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$51.34
US$44.83
-12.7%
9.5%US$51.00US$38.00n/a6
Nov ’25US$50.17
US$44.33
-11.6%
11.6%US$51.00US$35.00n/a6
Oct ’25US$48.12
US$42.00
-12.7%
9.1%US$47.00US$35.00n/a6
Sep ’25US$46.58
US$42.33
-9.1%
9.4%US$47.00US$35.00n/a6
Aug ’25US$42.21
US$40.60
-3.8%
12.7%US$47.00US$32.00n/a5
Jul ’25US$38.24
US$38.00
-0.6%
8.7%US$43.00US$32.00n/a6
Jun ’25US$35.93
US$37.29
+3.8%
8.8%US$42.00US$31.00n/a7
May ’25US$35.39
US$36.00
+1.7%
8.6%US$40.00US$31.00n/a6
Apr ’25US$34.51
US$33.57
-2.7%
7.6%US$38.00US$31.00n/a7
Mar ’25US$32.09
US$32.79
+2.2%
7.6%US$36.00US$28.50n/a7
Feb ’25US$27.50
US$29.43
+7.0%
5.9%US$32.00US$27.00n/a7
Jan ’25US$27.66
US$28.92
+4.5%
6.0%US$32.00US$27.00n/a6
Dec ’24US$25.60
US$28.25
+10.4%
3.8%US$30.00US$27.00n/a6
Nov ’24US$25.62
US$28.25
+10.3%
3.8%US$30.00US$27.00US$50.176
Oct ’24US$22.83
US$26.92
+17.9%
5.3%US$28.50US$25.00US$48.126
Sep ’24US$25.05
US$26.92
+7.5%
5.3%US$28.50US$25.00US$46.586
Aug ’24US$24.65
US$26.92
+9.2%
5.3%US$28.50US$25.00US$42.216
Jul ’24US$21.49
US$26.25
+22.1%
4.6%US$28.50US$25.00US$38.246
Jun ’24US$22.02
US$26.25
+19.2%
4.6%US$28.50US$25.00US$35.936
May ’24US$22.29
US$26.42
+18.5%
5.2%US$28.50US$25.00US$35.396
Apr ’24US$23.18
US$26.90
+16.0%
5.8%US$29.00US$25.00US$34.515
Mar ’24US$23.72
US$26.90
+13.4%
5.8%US$29.00US$25.00US$32.095
Feb ’24US$24.46
US$26.30
+7.5%
8.5%US$29.00US$23.00US$27.505
Jan ’24US$23.73
US$29.00
+22.2%
14.9%US$37.50US$23.00US$27.667
Dec ’23US$25.49
US$29.57
+16.0%
16.6%US$37.50US$23.00US$25.607
Nov ’23US$23.42
US$29.43
+25.7%
15.9%US$36.50US$23.00US$25.627

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

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