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. It operates through three segments: North America Confectionery, North America Salty Snacks, and International.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (23 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $143.53 Implied EV: $33.92B |
What growth rate is the market pricing in at $173?
The market implies +18.8% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +11.3%, reflecting heavy growth investment.
Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.
"Market is pessimistic — investigate whether fears are temporary or structural"
Price above estimated intrinsic value despite market fear — investigate whether assumptions need revision
