Hershey Stock Valuation

HSY -  USA Stock  

USD 212.61  3.07  1.47%

Do you wonder what the value of Hershey Foods Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Hershey Foods, is its stock price multiplied by the total number of shares outstanding, calculating Hershey Foods' enterprise value requires a different approach. It uses Hershey Foods' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 1.4 B in 2022. Enterprise Value is likely to drop to about 38.5 B in 2022.
Hershey Foods Corp retains a regular Real Value of $203.9 per share. The prevalent price of the firm is $212.61. At this time, the firm appears to be overvalued. Our model calculates the value of Hershey Foods Corp from evaluating the firm fundamentals such as Current Valuation of 51.39 B, return on asset of 14.07 %, and Return On Equity of 62.52 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
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Hershey Foods Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Hershey Foods's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 212.61
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Please note that Hershey Foods' price fluctuation is very steady at this time. Calculation of the real value of Hershey Foods Corp is based on 3 months time horizon. Increasing Hershey Foods' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Hershey Foods Corp is useful when determining the fair value of the Hershey stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hershey Foods. Since Hershey Foods is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hershey Stock. However, Hershey Foods' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
202.25
Downside
203.90
Real Value
233.98
Upside
Estimating the potential upside or downside of Hershey Foods Corp helps investors to forecast how Hershey stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hershey Foods more accurately as focusing exclusively on Hershey Foods' fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
6.927.097.14
Details
Hype
Prediction
LowEstimated ValueHigh
211.05212.70214.35
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.361.371.39
Details
11 Analysts
Consensus
LowTarget PriceHigh
181.00193.50220.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Hershey Foods' intrinsic value based on its ongoing forecasts of Hershey Foods' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Hershey Foods' closest peers. When choosing an evaluation method for Hershey Foods Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Hershey Valuation Drivers Correlation

Many accounts on the financial statements of Hershey Foods Corp are highly interrelated and sometimes correlated. Consequently, when conducting Hershey's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Hershey
Click cells to compare fundamentals

Hershey Valuation Trend

Knowing Hershey Foods' actual value is paramount for traders to make sound investment determinations. Hershey Foods' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Hershey Foods' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Hershey Foods' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Hershey Market Cap

Hershey Foods Corp is one of the top stocks in market capitalization category among related companies. Market capitalization of Confectioners industry is currently estimated at about 316.86 Billion. Hershey Foods retains roughly 42.64 Billion in market capitalization claiming about 13% of stocks in Confectioners industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

Hershey Foods Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Hershey Foods's current stock value. Our valuation model uses many indicators to compare Hershey Foods value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hershey Foods competition to find correlations between indicators driving Hershey Foods's intrinsic value. More Info.
Hershey Foods Corp is one of the top stocks in last dividend paid category among related companies. It is one of the top stocks in five year return category among related companies reporting about  0.61  of Five Year Return per Last Dividend Paid. The ratio of Last Dividend Paid to Five Year Return for Hershey Foods Corp is roughly  1.64 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hershey Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hershey Foods' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hershey Foods' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Hershey Foods' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Hershey Foods and how it compares across the competition.

About Hershey Foods Valuation

The equity valuation mechanism determines the current worth of Hershey Foods Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Hershey Foods Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hershey Foods Corp based exclusively on its fundamental and basic technical indicators. By analyzing Hershey Foods's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hershey Foods's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hershey Foods. We calculate exposure to Hershey Foods's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hershey Foods's related companies.
Last ReportedProjected for 2022
Gross ProfitB4.1 B
Profit Margin 0.17  0.16 
The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania. Hershey Foods operates under Confectioners classification in the United States and is traded on New York Stock Exchange. It employs 16620 people.

Hershey Foods Quarterly Enterprise Value

49.6 Billion

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Hershey Foods' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Hershey Foods' value is low or high relative to the company's performance and growth projections. Determining the market value of Hershey Foods can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Hershey Foods represents a small ownership stake in the entity. As a stockholder of Hershey, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Hershey Foods Dividends Analysis For Valuation

Dividend Yield is likely to rise to 0.0186 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (740.1 M) in 2022. . Hershey Foods Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Hershey Foods reported Accumulated Retained Earnings Deficit of 2.72 Billion in 2021. Price to Earnings Ratio is likely to rise to 32.08 in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 1.8 B in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-686 M-740.1 M
Dividend Yield 0.018  0.0186 
Dividends per Basic Common Share 3.41  3.18 
There are various types of dividends Hershey Foods can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Hershey shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Hershey Foods Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Hershey pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Hershey Foods by the value of the dividends paid out.

Hershey Foods Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Hershey Foods does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.47
Earnings Quarterly Growth34.80%
Revenue Growth16.10%
Payout Ratio45.08%
Enterprise Value To Ebitda20.21
Earnings Growth35.30%
Enterprise Value To Revenue5.50

Hershey Foods Current Valuation Indicators

Valuation refers to the process of determining the present value of Hershey Foods Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Hershey we look at many different elements of the entity such as Hershey's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Hershey Foods' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Hershey Foods' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Hershey Foods, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Hershey Foods' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Hershey Foods' worth.
Please check Risk vs Return Analysis. Note that the Hershey Foods Corp information on this page should be used as a complementary analysis to other Hershey Foods' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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Is Hershey Foods' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hershey Foods. If investors know Hershey will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hershey Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Hershey Foods Corp is measured differently than its book value, which is the value of Hershey that is recorded on the company's balance sheet. Investors also form their own opinion of Hershey Foods' value that differs from its market value or its book value, called intrinsic value, which is Hershey Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hershey Foods' market value can be influenced by many factors that don't directly affect Hershey Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hershey Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine Hershey Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hershey Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.