Price to Earnings (P/E)
since 2005
Calculation
General Mills Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings attributable to General Mills1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 28, 2019 | 18.04 | = | 52.52 | ÷ | 2.91 | 2.91 | = | 1,752,700 | ÷ | 601,959,611 | |
| Jun 29, 2018 | 12.32 | = | 44.26 | ÷ | 3.59 | 3.59 | = | 2,131,000 | ÷ | 593,367,848 | |
| Jun 29, 2017 | 19.14 | = | 54.97 | ÷ | 2.87 | 2.87 | = | 1,657,500 | ÷ | 577,099,679 | |
| Jun 30, 2016 | 25.09 | = | 71.32 | ÷ | 2.84 | 2.84 | = | 1,697,400 | ÷ | 597,020,906 | |
| Jul 6, 2015 | 27.74 | = | 56.59 | ÷ | 2.04 | 2.04 | = | 1,221,300 | ÷ | 598,737,719 | |
| Jul 3, 2014 | 17.81 | = | 53.05 | ÷ | 2.98 | 2.98 | = | 1,824,400 | ÷ | 612,508,457 | |
| Jul 3, 2013 | 16.91 | = | 48.95 | ÷ | 2.89 | 2.89 | = | 1,855,200 | ÷ | 640,860,417 | |
| Jul 3, 2012 | 16.15 | = | 39.02 | ÷ | 2.42 | 2.42 | = | 1,567,300 | ÷ | 648,588,155 | |
| Jul 8, 2011 | 13.20 | = | 36.81 | ÷ | 2.79 | 2.79 | = | 1,798,300 | ÷ | 644,862,721 | |
| Jul 9, 2010 | 15.38 | = | 36.15 | ÷ | 2.35 | 2.35 | = | 1,530,500 | ÷ | 651,216,065 | |
| Jul 13, 2009 | 14.74 | = | 29.55 | ÷ | 2.00 | 2.00 | = | 1,304,400 | ÷ | 650,831,872 | |
| Jul 11, 2008 | 16.40 | = | 31.57 | ÷ | 1.93 | 1.93 | = | 1,294,700 | ÷ | 672,405,794 | |
| Jul 26, 2007 | 16.05 | = | 27.81 | ÷ | 1.73 | 1.73 | = | 1,143,900 | ÷ | 660,376,158 | |
| Jul 27, 2006 | 16.84 | = | 26.01 | ÷ | 1.54 | 1.54 | = | 1,090,000 | ÷ | 705,623,534 | |
| Jul 28, 2005 | 14.03 | = | 23.77 | ÷ | 1.69 | 1.69 | = | 1,240,000 | ÷ | 732,047,408 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of General Mills Inc. Annual Report.
The Price to Earnings (P/E) ratio exhibited a period of relative stability followed by significant volatility between 2005 and 2019. For the first decade of the period, the valuation remained within a consistent range, before experiencing a sharp expansion and subsequent contraction in the final five years.
- Valuation Stability (2005–2014)
- From 2005 to 2014, the P/E ratio fluctuated within a narrow band between 13.20 and 17.81. During this timeframe, the share price grew steadily from 23.77 to 53.05, supported by a generally positive trend in earnings per share, which rose from 1.69 to 2.98. This alignment suggests a consistent market valuation relative to earnings growth over this ten-year horizon.
- Valuation Expansion (2015–2016)
- A pronounced increase in the P/E ratio occurred in 2015 and 2016, peaking at 27.74 and 25.09, respectively. This expansion was driven by a significant contraction in earnings per share, which fell to 2.04 in 2015, while the share price continued to climb toward a peak of 71.32 in 2016. This divergence created a temporary valuation premium, as the market price did not decline in tandem with the reduction in earnings.
- Correction and Stabilization (2017–2019)
- A sharp correction in valuation followed the 2016 peak, with the P/E ratio falling to 12.32 by 2018, the lowest point in the observed period. This contraction coincided with a decrease in share price to 44.26. By 2019, the P/E ratio returned to 18.04, reflecting a normalization of the relationship between the share price of 52.52 and the earnings per share of 2.91.
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Comparison to Competitors
General Mills Inc., P/E, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Jun 28, 2019 | 18.04 | 28.21 | 21.72 | 27.83 | 18.94 |
| Jun 29, 2018 | 12.32 | 30.47 | 20.03 | 13.01 | 15.08 |
| Jun 29, 2017 | 19.14 | 150.54 | 21.45 | 32.81 | 26.52 |
| Jun 30, 2016 | 25.09 | 27.48 | 41.76 | 24.09 | 22.84 |
| Jul 6, 2015 | 27.74 | 26.01 | 8.59 | 25.72 | 20.57 |
| Jul 3, 2014 | 17.81 | 25.87 | 27.92 | 22.86 | 17.14 |
| Jul 3, 2013 | 16.91 | 19.54 | 14.69 | 17.66 | 14.60 |
| Jul 3, 2012 | 16.15 | 19.00 | 15.56 | 18.84 | 17.49 |
| Jul 8, 2011 | 13.20 | 18.27 | 19.01 | 15.45 | 16.64 |
| Jul 9, 2010 | 15.38 | 12.42 | 13.54 | 15.93 | 15.41 |
| Jul 13, 2009 | 14.74 | 17.81 | 14.11 | 16.49 | 14.53 |
| Jul 11, 2008 | 16.40 | 16.37 | 11.54 | 15.82 | 9.95 |
| Jul 26, 2007 | 16.05 | 23.10 | 18.67 | 20.35 | — |
| Jul 27, 2006 | 16.84 | 21.69 | 17.35 | 18.79 | — |
| Jul 28, 2005 | 14.03 | 20.40 | 19.38 | 24.28 | — |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Sector (Food, Beverage & Tobacco)
General Mills Inc., P/E, long-term trends, comparison to sector (food, beverage & tobacco)
| General Mills Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Jun 28, 2019 | 18.04 | 24.75 |
| Jun 29, 2018 | 12.32 | 18.05 |
| Jun 29, 2017 | 19.14 | 37.84 |
| Jun 30, 2016 | 25.09 | 26.08 |
| Jul 6, 2015 | 27.74 | 19.86 |
| Jul 3, 2014 | 17.81 | 22.41 |
| Jul 3, 2013 | 16.91 | 16.88 |
| Jul 3, 2012 | 16.15 | 18.09 |
| Jul 8, 2011 | 13.20 | 17.18 |
| Jul 9, 2010 | 15.38 | 14.06 |
| Jul 13, 2009 | 14.74 | 16.01 |
| Jul 11, 2008 | 16.40 | 13.43 |
| Jul 26, 2007 | 16.05 | 21.20 |
| Jul 27, 2006 | 16.84 | 19.54 |
| Jul 28, 2005 | 14.03 | 21.53 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Industry (Consumer Staples)
General Mills Inc., P/E, long-term trends, comparison to industry (consumer staples)
| General Mills Inc. | Consumer Staples | |
|---|---|---|
| Jun 28, 2019 | 18.04 | 31.92 |
| Jun 29, 2018 | 12.32 | 20.62 |
| Jun 29, 2017 | 19.14 | 22.78 |
| Jun 30, 2016 | 25.09 | 21.50 |
| Jul 6, 2015 | 27.74 | 21.97 |
| Jul 3, 2014 | 17.81 | 19.71 |
| Jul 3, 2013 | 16.91 | 17.00 |
| Jul 3, 2012 | 16.15 | 16.60 |
| Jul 8, 2011 | 13.20 | 14.81 |
| Jul 9, 2010 | 15.38 | 14.32 |
| Jul 13, 2009 | 14.74 | 14.63 |
| Jul 11, 2008 | 16.40 | 15.52 |
| Jul 26, 2007 | 16.05 | 19.68 |
| Jul 27, 2006 | 16.84 | 19.79 |
| Jul 28, 2005 | 14.03 | 20.04 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).