We’ve recently updated our valuation analysis.

Conagra Brands Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CAG 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/Revenue2.1x
Enterprise Value/EBITDA11.7x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CAG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.7x
SJM J. M. Smucker
22x4.1%US$15.6b
CPB Campbell Soup
19x5.2%US$15.4b
LW Lamb Weston Holdings
29.4x8.4%US$15.9b
TSN Tyson Foods
12.3x31.6%US$18.5b
CAG Conagra Brands
20.6x15.1%US$16.6b

Price-To-Earnings vs Peers: CAG is good value based on its Price-To-Earnings Ratio (20.6x) compared to the peer average (20.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CAG is expensive based on its Price-To-Earnings Ratio (20.6x) compared to the US Food industry average (18.2x)


Price to Earnings Ratio vs Fair Ratio

What is CAG'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.

CAG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.6x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: CAG is good value based on its Price-To-Earnings Ratio (20.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).


Share Price vs Fair Value

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

Below Fair Value: CAG ($34.84) is trading below our estimate of fair value ($95.31)

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


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 CAG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$34.84
US$42.59
+22.2%
7.0%US$46.50US$37.00n/a16
May ’24US$38.22
US$42.46
+11.1%
6.8%US$46.00US$37.00n/a16
Apr ’24US$37.56
US$41.41
+10.2%
9.2%US$48.00US$35.00n/a16
Mar ’24US$35.74
US$41.44
+16.0%
9.5%US$48.00US$35.00n/a17
Feb ’24US$36.91
US$41.91
+13.6%
8.9%US$48.00US$35.00n/a17
Jan ’24US$38.70
US$38.53
-0.4%
8.3%US$45.00US$34.00n/a17
Dec ’23US$37.83
US$37.53
-0.8%
7.5%US$42.00US$33.00n/a17
Nov ’23US$36.34
US$36.88
+1.5%
6.8%US$42.00US$33.00n/a16
Oct ’23US$32.63
US$36.41
+11.6%
7.3%US$42.00US$32.00n/a16
Sep ’23US$34.30
US$36.34
+6.0%
7.3%US$42.00US$32.00n/a16
Aug ’23US$34.83
US$36.44
+4.6%
8.1%US$44.00US$32.00n/a16
Jul ’23US$34.56
US$36.48
+5.5%
8.0%US$44.00US$31.00n/a17
Jun ’23US$32.52
US$36.48
+12.2%
8.0%US$44.00US$31.00n/a17
May ’23US$34.93
US$36.53
+4.6%
8.5%US$44.50US$31.00US$38.2216
Apr ’23US$34.08
US$36.80
+8.0%
7.5%US$44.50US$34.00US$37.5617
Mar ’23US$34.49
US$37.48
+8.7%
6.7%US$44.50US$34.00US$35.7416
Feb ’23US$34.97
US$37.48
+7.2%
6.7%US$44.50US$34.00US$36.9116
Jan ’23US$34.15
US$37.19
+8.9%
5.5%US$42.00US$34.00US$38.7016
Dec ’22US$30.45
US$37.16
+22.0%
5.3%US$41.50US$34.00US$37.8316
Nov ’22US$32.42
US$37.23
+14.8%
5.4%US$41.50US$34.00US$36.3416
Oct ’22US$33.70
US$37.47
+11.2%
6.2%US$41.50US$34.00US$32.6316
Sep ’22US$33.43
US$37.47
+12.1%
6.9%US$42.00US$34.00US$34.3017
Aug ’22US$33.49
US$37.47
+11.9%
6.9%US$42.00US$34.00US$34.8317
Jul ’22US$36.00
US$39.38
+9.4%
8.1%US$44.00US$34.00US$34.5616
Jun ’22US$38.18
US$39.29
+2.9%
8.0%US$44.00US$34.00US$32.5217
May ’22US$37.09
US$39.12
+5.5%
7.5%US$44.00US$34.00US$34.9317

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


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