TreeHouse Foods Valuation

Is THS 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: THS ($42.16) is trading below our estimate of fair value ($55.23)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

THS 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/Revenue1.1x
Enterprise Value/EBITDA12.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does THS's PS Ratio compare to its peers?

The above table shows the PS ratio for THS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
TR Tootsie Roll Industries
3xn/aUS$2.2b
UTZ Utz Brands
1x3.1%US$2.5b
SEB Seaboard
0.3xn/aUS$3.1b
NOMD Nomad Foods
0.9x2.8%US$3.1b
THS TreeHouse Foods
0.6x5.0%US$2.1b

Price-To-Sales vs Peers: THS is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.8%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.8%
n/an/an/a
No more companies

Price-To-Sales vs Industry: THS is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Food industry average (1x).


Price to Sales Ratio vs Fair Ratio

What is THS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

THS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: THS is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).


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 THS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$42.16
US$39.89
-5.4%
7.4%US$44.00US$35.00n/a9
Aug ’25US$39.35
US$37.33
-5.1%
4.6%US$41.00US$35.00n/a9
Jul ’25US$36.28
US$37.00
+2.0%
5.4%US$41.00US$34.00n/a9
Jun ’25US$36.31
US$37.25
+2.6%
6.3%US$41.00US$34.00n/a8
May ’25US$37.92
US$38.50
+1.5%
7.2%US$43.00US$34.00n/a8
Apr ’25US$38.70
US$38.63
-0.2%
8.2%US$45.00US$34.00n/a8
Mar ’25US$35.39
US$39.86
+12.6%
8.2%US$45.00US$35.00n/a7
Feb ’25US$42.90
US$43.29
+0.9%
6.6%US$48.00US$38.00n/a7
Jan ’25US$41.45
US$43.00
+3.7%
6.7%US$48.00US$38.00n/a7
Dec ’24US$41.15
US$42.86
+4.1%
6.2%US$47.00US$38.00n/a7
Nov ’24US$41.53
US$50.14
+20.7%
9.8%US$59.00US$45.00n/a7
Oct ’24US$43.58
US$53.00
+21.6%
8.1%US$59.00US$45.00n/a6
Sep ’24US$45.30
US$54.60
+20.5%
4.7%US$59.00US$52.00US$41.095
Aug ’24US$51.54
US$58.17
+12.9%
6.0%US$64.00US$54.00US$39.356
Jul ’24US$50.38
US$58.50
+16.1%
5.6%US$64.00US$54.00US$36.286
Jun ’24US$46.90
US$57.67
+23.0%
7.3%US$64.00US$52.00US$36.316
May ’24US$54.09
US$55.50
+2.6%
7.8%US$60.00US$49.00US$37.926
Apr ’24US$50.43
US$54.17
+7.4%
9.5%US$60.00US$47.00US$38.706
Mar ’24US$48.60
US$52.83
+8.7%
8.4%US$60.00US$47.00US$35.396
Feb ’24US$47.89
US$51.33
+7.2%
10.1%US$60.00US$47.00US$42.906
Jan ’24US$49.38
US$50.83
+2.9%
8.6%US$60.00US$47.00US$41.456
Dec ’23US$49.26
US$50.50
+2.5%
9.1%US$60.00US$47.00US$41.156
Nov ’23US$49.93
US$50.50
+1.1%
8.9%US$60.00US$47.00US$41.536
Oct ’23US$42.42
US$50.50
+19.0%
10.0%US$60.00US$45.00US$43.586
Sep ’23US$46.17
US$49.67
+7.6%
11.8%US$60.00US$42.00US$45.306

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


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