Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of frozen potato products in the United States, Canada, Mexico, and internationally. The company offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.
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 (11 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $26.91 Implied EV: $7.67B |
What growth rate is the market pricing in at $48?
The market implies +15.8% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +9.7%, reflecting heavy growth investment.
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
"Market is pessimistic — investigate whether fears are temporary or structural"
Significantly overvalued despite market fear — fear alone does not justify the premium
