* Note: Prices are in Million (M) USD.
Description:
McCormick & Company Incorporated (MKC-V) is a leading global provider of flavor solutions, renowned for its extensive portfolio of spices, seasoning blends, condiments, and flavoring products. The company serves a diverse customer base in both retail and foodservice sectors, including food manufacturers and culinary professionals, while also addressing consumer demands for enhanced taste and healthier eating options. With a strong commitment to innovation, quality, and sustainability, McCormick is well-positioned to capitalize on the growing trend towards flavorful and health-conscious food products worldwide.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $95 M
Debt : $4,358 M
EBITDA : $1,329 M
Net Debt (Debt - Cash): $4,263 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Consumer defensive
Industry: Packaged foods
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.41
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-11-30): $6,724 M
Revenue 5 Years Ago (2019-11-30): $5,347 M
Total Growth over 5 Years: 25.7%
5-Year Revenue CAGR (Historical): 4.7%
Forward 5-Year CAGR (Tapered): 4.2%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-11-30): $270 M
Share Count 5 Years Ago (2020-11-30): $269 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.00
Trailing 12-Month Earnings Per Share (EPS): $2.88
Average Earnings Per Share (EPS): $2.88
Dividend Per Share (DPS): $2
Payout Ratio: 61%
Dividend Yield: 2.72%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 21.7%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $61.67
52-Week Low: $62.34
Threshold Price (15% Above 52-Week Low): $71.69
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $17,941 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 23 points to above McCormick & Company Incorporated (MKC-V) stock.
Fair Value PE
15, Industry Based PE
18, Growth Based PE
15, ROE Based PE
21.68, Risk-Free Anchored PE (25% MoS)
18.12. Based on these 5 values, average assigned is
17.56. Value-Trades has assined P/E value
17.56. An average (Current Year EPS + Next Year EPS) earning per share is
$2.88.
Fair value using multiple P/Es (blended): $50.57 (PE 17.56 × EPS $2.88)
So the Final Fair Value is: $50.57
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $2.88
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 17.56 | $50.57 |
