Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products in the United States, the United Kingdom, Europe, and Mexico. The last earnings update was 56 days ago. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$647.13||$669.50||$676.90||$719.77||$765.36|
|Source||Analyst x3||Analyst x3||Analyst x1||Extrapolated @ (6.33%)||Extrapolated @ (6.33%)|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $765 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$11,385 = $2,724 + $8,661
Value = Total value / Shares Outstanding ($11,385 / 249)Discount to Share Price
Value per share (USD): $45.72
Current discount (share price of $20.84): 54.42%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($5,188,756,933).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.767 = 0.502 (1 + (1- 2.7%) (54.42%))
Levered Beta used in calculation = 0.8
Mr. William W. Lovette, also known as Bill, has been the Chief Executive Officer and President of Pilgrim's Pride Corporation since January 3, 2011. Mr. Lovette served as the President and Chief Operating Officer of Case Foods, Inc. from october 2008 to December 2010. He has more than 29 years of industry leadership experience. He spent 25 years with Tyson Foods in various roles in senior management, which included President of its International Business Unit since 1999. He served as Senior Group Vice President of Poultry and Prepared Foods of Tyson Foods Inc. from August 2005 to October 10, 2007. Mr. Lovette served as Group Vice President of Food Service for Tyson Foods Inc. since 2001. He served as Vice President, Operations of Tyson Foods Inc. since 1995 and served as its Vice President, Distribution since 1992. He served as President of Foodservice Group Tyson Foods Inc. since April 29, 2000. Mr. Lovette has been a Director of Pilgrim's Pride Corporation since February 21, 2011. Mr. Lovette served as a Director of Tyson de Mexico, Cobb-Vantress, Inc. and EFS Network, Inc. He holds a B.S. degree from Texas A&M University. He also graduated in Harvard Business School's Advanced Management Program.
Average tenure and age of the Pilgrim's Pride management team in years:
Average tenure and age of the Pilgrim's Pride board of directors in years:
Below, I will examine Pilgrim's Pride Corporation's (NASDAQ:PPC) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. … For Pilgrim's Pride, its most recent trailing-twelve-month earnings is US$720.08M, which compared to the previous year's figure, has climbed up by a significant 70.87%. … This shows that any uplift the industry is gaining from, Pilgrim's Pride is able to amplify this to its advantage.What does this mean?Simply Wall St - – Full article
In terms of relative valuation, PPC’s PE ratio is around 7.51x while its Food peer level trades at, 18.75x meaning that relative to its comparable company group, we can invest in PPC at a lower price. … What’s even more appeal is that LDL’s PE ratio is currently around 14.12x against its its Machinery peer level of, 23.14x implying that relative to its comparable company group, LDL’s shares can be purchased for a lower price. … Additionally, INVA’s PE ratio stands at 10.57x against its its Pharmaceuticals peer level of, 22.7x implying that relative to its comparable company group, INVA’s shares can be purchased for a lower price.Simply Wall St - – Full article
It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for PPC Price per share = $23.88 Earnings per share = $2.792 ∴ Price-Earnings Ratio = $23.88 ÷ $2.792 = 8.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing lower risk firms with PPC, then PPC’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.Simply Wall St - – Full article
Pilgrim's Pride Corporation's (NASDAQ:PPC) announced its latest earnings update in December 2017, which suggested that the business benefited from a large tailwind, eventuating to a high double-digit earnings growth of 57.67%. … Investors may find it useful to understand how market analysts view Pilgrim's Pride's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Pilgrim's Pride Analysts' expectations for this coming year seems positive, with earnings rising by a robust 14.00%.Simply Wall St - – Full article
PPC's stock is now hovering at around -44% under its actual value of $44.32, at a price of US$24.79, based on its expected future cash flows. … HLTH's stock is now trading at -54% under its true value of $3.6, at a price of US$1.65, based on its expected future cash flows. … KNL's shares are currently trading at -44% lower than its intrinsic level of $35, at the market price of US$19.61, based on its expected future cash flows.Simply Wall St - – Full article
Moreover, PPC has produced US$801.32M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 29.25%, meaning that PPC’s operating cash is sufficient to cover its debt. … NasdaqGS:PPC Historical Debt Mar 23rd 18 Is PPC’s debt level acceptable? … Next Steps: Although PPC’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.Simply Wall St - – Full article
A question to answer is whether Pilgrim's Pride's current trading price of $25.11 reflective of the actual value of the mid-cap? … Another thing to keep in mind is that Pilgrim's Pride’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.Simply Wall St - – Full article
After reading Pilgrim's Pride Corporation's (NASDAQ:PPC) most recent earnings announcement (24 September 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Check out our latest analysis for Pilgrim's Pride Commentary On PPC's Past Performance For the purpose of this commentary, I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For Pilgrim's Pride, its latest earnings (trailing twelve month) is US$630.86M, which, in comparison to the prior year's figure, has increased by 45.53%.Simply Wall St - – Full article
5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $722.80 $640.30 $698.40 $698.87 $699.35 Source Analyst x2 Analyst x1 Analyst x1 Extrapolated @ (0.07%) Extrapolated @ (0.07%) Present Value Discounted @ 8.49% $666.21 $543.97 $546.87 $504.40 $465.23 Present Value of 5-year Cash Flow (PVCF)= $2,727 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $699 × (1 + 2.5%) ÷ (8.5% – 2.5%) = $11,896 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $11,896 / ( 1 + 8.5%)5 = $7,914 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $10,640. … NasdaqGS:PPC Intrinsic Value Feb 9th 18 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.Simply Wall St - – Full article
View our latest analysis for Pilgrim's Pride Did Lovette create value? … PPC can create value to shareholders by increasing its profitability, which in turn is reflected into the share price and the investor's ability to sell their shares at higher capital gains. … Given earnings are moving the right way, CEO pay should represent Lovette's value creation for shareholders.Simply Wall St - – Full article
Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products in the United States, the United Kingdom, Europe, and Mexico. The company offers fresh chicken products, including pre-marinated or non-marinated refrigerated (nonfrozen) whole or cut-up chicken; and prepackaged case-ready chicken, such as whole chickens and chicken parts. It also provides prepared chicken products comprising portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. The company sells its products to the foodservice market that includes chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprises primarily grocery store chains, wholesale clubs, and other retail distributors. It also exports its products the Middle East, Asia, the Commonwealth of Independent States, and other countries, as well as France, Puerto Rico, and the Netherlands. The company was founded in 1946 and is headquartered in Greeley, Colorado. Pilgrim's Pride Corporation is a subsidiary of JBS S.A.
|Name:||Pilgrim's Pride Corporation|
Pilgrim's Pride Corporation
1770 Promontory Circle,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||PPC||New Common Stock||Nasdaq Global Select||US||USD||29. Dec 2009|
|DB||6PP||New Common Stock||Deutsche Boerse AG||DE||EUR||29. Dec 2009|
|Packaged Foods and Meats|
|Food, Beverage & Tobacco|
|Area||Date (UTC time)|
|Company Analysis updated:||2018/05/27 10:41|
|End of day share price update:||2018/05/25 00:00|
|Last estimates confirmation:||2018/05/18|
|Last earnings update:||2018/04/01|
|Last annual earnings update:||2017/12/31|
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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 here.