JM Smucker Stock Valuation

SJM
 Stock
  

USD 139.52  1.13  0.80%   

What is the enterprise value of JM Smucker? 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 JM Smucker, is its stock price multiplied by the total number of shares outstanding, calculating JM Smucker's enterprise value requires a different approach. It uses JM Smucker's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
JM Smucker owns a latest Real Value of $151.03 per share. The recent price of the firm is $139.52. At this time, the firm appears to be undervalued. Our model calculates the value of JM Smucker from inspecting the firm fundamentals such as Operating Margin of 19.92 %, return on asset of 4.38 %, and Shares Owned by Insiders of 4.45 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued equities and dropping overvalued equities since, sooner or later, asset prices and their ongoing real values will blend.
  
JM Smucker 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 JM Smucker's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 139.52
Please note that JM Smucker's price fluctuation is very steady at this time. Calculation of the real value of JM Smucker is based on 3 months time horizon. Increasing JM Smucker's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for JM Smucker is useful when determining the fair value of the JM Smucker stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of JM Smucker. Since JM Smucker is currently traded on the exchange, buyers and sellers on that exchange determine the market value of JM Smucker Stock. However, JM Smucker's 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.
125.57
Downside
151.03
Real Value
152.14
Upside
Estimating the potential upside or downside of JM Smucker helps investors to forecast how JM Smucker 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 JM Smucker more accurately as focusing exclusively on JM Smucker's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
136.62140.11141.86
Details
Hype
Prediction
LowEstimated ValueHigh
138.46139.57140.68
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
3.683.793.90
Details
10 Analysts
Consensus
LowTarget PriceHigh
130.00139.44146.00
Details

JM Smucker Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining JM Smucker's current stock value. Our valuation model uses many indicators to compare JM Smucker value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across JM Smucker competition to find correlations between indicators driving JM Smucker's intrinsic value. More Info.
JM Smucker is currently regarded as top stock in five year return category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about  0.63  of Price to Book per Five Year Return. The ratio of Five Year Return to Price to Book for JM Smucker is roughly  1.59 . Comparative valuation analysis is a catch-all model that can be used if you cannot value JM Smucker by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for JM Smucker's 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 JM Smucker's 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 JM Smucker's 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 JM Smucker and how it compares across the competition.

About JM Smucker Valuation

The stock valuation mechanism determines the current worth of JM Smucker on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of JM Smucker. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of JM Smucker based exclusively on its fundamental and basic technical indicators. By analyzing JM Smucker'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 JM Smucker'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 JM Smucker. We calculate exposure to JM Smucker's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to JM Smucker's related companies.
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee peanut butter and specialty spreads fruit spreads, shortening and oils, and frozen sandwiches and snacks pet food and pet snacks and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, 9Lives, Kibbles n Bits, Milk-Bone, Pup-Peroni, Rachael Ray Nutrish and Natures Recipe, Folgers, Caf Bustelo, Dunkin, Folgers, Caf Bustelo, 1850, Jif, Smuckers, Smuckers Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.
JM Smucker's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether JM Smucker's value is low or high relative to the company's performance and growth projections. Determining the market value of JM Smucker can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of JM Smucker represents a small ownership stake in the entity. As a stockholder of JM Smucker, 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.

JM Smucker Dividends Analysis For Valuation

There are various types of dividends JM Smucker 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 JM Smucker 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 JM Smucker directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When JM Smucker pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of JM Smucker by the value of the dividends paid out.

JM Smucker 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 JM Smucker 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 Ratio0.36
Earnings Quarterly Growth37.50%
Revenue Growth5.90%
Payout Ratio66.38%
Enterprise Value To Ebitda11.63
Earnings Growth41.50%
Enterprise Value To Revenue2.32
Additionally, take a look at World Market Map. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running JM Smucker price analysis, check to measure JM Smucker's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy JM Smucker is operating at the current time. Most of JM Smucker's value examination focuses on studying past and present price action to predict the probability of JM Smucker's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move JM Smucker's price. Additionally, you may evaluate how the addition of JM Smucker to your portfolios can decrease your overall portfolio volatility.
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Is JM Smucker's 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 JM Smucker. If investors know JM Smucker 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 JM Smucker 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 JM Smucker is measured differently than its book value, which is the value of JM Smucker that is recorded on the company's balance sheet. Investors also form their own opinion of JM Smucker's value that differs from its market value or its book value, called intrinsic value, which is JM Smucker's 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 JM Smucker's market value can be influenced by many factors that don't directly affect JM Smucker's 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 JM Smucker's value and its price as these two are different measures arrived at by different means. Investors typically determine JM Smucker value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JM Smucker's 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.