Campbell Soup Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • PM vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CPB ($42.26) is trading below our estimate of fair value ($67.81)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CPB 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/Revenue1.9x
Enterprise Value/EBITDA10x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.5x
CAG Conagra Brands
13.6x6.7%US$13.4b
MKC McCormick
26.7x8.0%US$18.2b
HRL Hormel Foods
21.3x8.3%US$16.7b
K Kellanova
24.5x14.4%US$19.2b
CPB Campbell Soup
15.8x7.4%US$12.6b

Price-To-Earnings vs Peers: CPB is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (21.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CPB is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the US Food industry average (15x).


Price to Earnings Ratio vs Fair Ratio

What is CPB'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.

CPB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio19.3x

PM vs Fair Ratio: CPB is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).


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 CPB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$42.26
US$46.16
+9.2%
10.3%US$61.00US$40.00n/a20
Feb ’25US$45.20
US$46.19
+2.2%
10.0%US$61.00US$40.00n/a21
Jan ’25US$43.23
US$46.00
+6.4%
9.5%US$61.00US$38.00n/a20
Dec ’24US$40.60
US$46.05
+13.4%
10.4%US$61.00US$38.00n/a20
Nov ’24US$40.67
US$46.30
+13.8%
10.1%US$61.00US$38.00n/a20
Oct ’24US$41.08
US$46.58
+13.4%
9.8%US$61.00US$41.00n/a19
Sep ’24US$40.89
US$47.22
+15.5%
10.0%US$61.00US$41.00n/a18
Aug ’24US$45.50
US$50.50
+11.0%
8.6%US$61.00US$42.00n/a19
Jul ’24US$45.71
US$50.87
+11.3%
6.9%US$58.00US$43.00n/a19
Jun ’24US$50.65
US$53.65
+5.9%
9.3%US$61.00US$41.00n/a17
May ’24US$54.63
US$53.47
-2.1%
9.1%US$61.00US$41.00n/a17
Apr ’24US$54.98
US$53.29
-3.1%
9.3%US$61.00US$41.00n/a17
Mar ’24US$51.91
US$52.79
+1.7%
8.9%US$61.00US$41.00n/a19
Feb ’24US$51.67
US$53.00
+2.6%
8.8%US$61.00US$41.00US$45.2019
Jan ’24US$56.75
US$52.53
-7.4%
9.3%US$61.00US$39.00US$43.2319
Dec ’23US$53.59
US$48.33
-9.8%
7.2%US$55.00US$39.00US$40.6018
Nov ’23US$52.57
US$48.35
-8.0%
7.4%US$55.00US$39.00US$40.6717
Oct ’23US$47.12
US$48.18
+2.2%
7.7%US$55.00US$38.00US$41.0817
Sep ’23US$49.37
US$48.00
-2.8%
7.7%US$55.00US$38.00US$40.8917
Aug ’23US$49.58
US$46.94
-5.3%
7.8%US$55.00US$38.00US$45.5017
Jul ’23US$48.49
US$46.89
-3.3%
6.9%US$52.00US$38.00US$45.7118
Jun ’23US$47.00
US$45.61
-3.0%
7.1%US$51.00US$38.00US$50.6519
May ’23US$47.22
US$45.34
-4.0%
7.4%US$51.00US$38.00US$54.6319
Apr ’23US$45.05
US$45.24
+0.4%
7.4%US$51.00US$38.00US$54.9819
Mar ’23US$44.41
US$45.72
+3.0%
8.0%US$54.00US$38.00US$51.9118
Feb ’23US$44.15
US$45.67
+3.4%
8.0%US$54.00US$38.00US$51.6718

Analyst Forecast: Target price is less than 20% higher than the current share price.


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