Tyson Foods, Inc.

NYSE:TSN Stock Report

Market Cap: US$22.4b

Tyson Foods Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TSN ($63.25) is trading below our estimate of fair value ($331.9)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TSN. This is calculated by dividing TSN's market cap by their current earnings.
What is TSN's PE Ratio?
PE Ratio28.1x
EarningsUS$800.00m
Market CapUS$22.39b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
MKC McCormick
26.1x5.8%US$20.2b
HRL Hormel Foods
21.2x10.1%US$16.3b
K Kellanova
27x9.0%US$27.8b
GIS General Mills
14.7x3.6%US$34.9b
TSN Tyson Foods
28.1x22.5%US$22.4b

Price-To-Earnings vs Peers: TSN is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does TSN'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$43.91m
SEED Origin Agritech
1.9xn/aUS$15.55m
FAMI Farmmi
1.9xn/aUS$2.74m
IDBH.F Industrias Bachoco. de
0.0002xn/aUS$59.94k
TSN 28.1xIndustry Avg. 19.3xNo. of Companies7PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TSN is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the US Food industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is TSN'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.

TSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.1x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: TSN is good value based on its Price-To-Earnings Ratio (28.1x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).

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 TSN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$63.25
US$65.57
+3.7%
10.7%US$80.00US$55.00n/a12
Nov ’25US$58.36
US$63.74
+9.2%
13.9%US$80.00US$50.00n/a12
Oct ’25US$59.76
US$64.16
+7.4%
13.8%US$80.00US$50.00n/a12
Sep ’25US$64.31
US$64.09
-0.3%
12.5%US$80.00US$51.00n/a11
Aug ’25US$60.76
US$62.45
+2.8%
12.8%US$80.00US$51.00n/a11
Jul ’25US$57.36
US$62.64
+9.2%
12.7%US$80.00US$51.00n/a11
Jun ’25US$57.25
US$63.50
+10.9%
13.3%US$83.00US$51.00n/a12
May ’25US$60.29
US$62.11
+3.0%
14.4%US$83.00US$48.00n/a13
Apr ’25US$57.85
US$60.03
+3.8%
15.7%US$83.00US$48.00n/a13
Mar ’25US$53.20
US$60.03
+12.8%
15.7%US$83.00US$48.00n/a13
Feb ’25US$56.63
US$55.69
-1.7%
18.7%US$82.00US$43.00n/a13
Jan ’25US$53.75
US$54.50
+1.4%
21.0%US$82.00US$43.00n/a12
Dec ’24US$48.20
US$57.03
+18.3%
25.0%US$82.00US$43.00n/a12
Nov ’24US$46.47
US$60.48
+30.2%
21.6%US$85.00US$45.00US$58.3613
Oct ’24US$50.49
US$61.02
+20.9%
20.4%US$85.00US$48.00US$59.7613
Sep ’24US$52.59
US$60.49
+15.0%
19.8%US$85.00US$48.00US$64.3112
Aug ’24US$55.32
US$61.33
+10.9%
21.3%US$85.00US$48.00US$60.7612
Jul ’24US$51.04
US$61.58
+20.6%
22.9%US$96.00US$48.00US$57.3612
Jun ’24US$50.61
US$60.91
+20.3%
22.6%US$96.00US$48.00US$57.2511
May ’24US$62.33
US$69.73
+11.9%
18.2%US$103.00US$56.00US$60.2911
Apr ’24US$59.32
US$69.91
+17.9%
20.2%US$103.00US$56.00US$57.8511
Mar ’24US$59.29
US$69.91
+17.9%
20.2%US$103.00US$56.00US$53.2011
Feb ’24US$65.13
US$77.27
+18.6%
17.8%US$106.00US$58.00US$56.6311
Jan ’24US$62.25
US$77.75
+24.9%
17.1%US$106.00US$58.00US$53.7512
Dec ’23US$65.48
US$78.00
+19.1%
16.3%US$102.00US$58.00US$48.2012
Nov ’23US$68.00
US$89.49
+31.6%
14.3%US$111.00US$68.00US$46.4712

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

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