Microsoft Excel LibreOffice Calc

Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

General Mills Inc., current price multiples

Microsoft Excel LibreOffice Calc
General Mills Inc. Kraft Heinz Co. Mondelēz International Inc. Food Producers Consumer Goods
Selected Financial Data
Current share price (P) $ 44.46
No. shares of common stock outstanding 596,229,932
Growth rate (g) 13.17%
 
Earnings per share (EPS) $ 3.57
Next year expected EPS $ 4.04
Operating profit per share $ 4.21
Sales per share $ 26.40
Book value per share (BVPS) $ 10.30
Ratios (Price Multiples)
Price to earnings (P/E) 12.44 6.33 22.05 10.31 20.06
Price to next year expected earnings 10.99 6.14 20.43 9.78 18.21
Price-earnings-growth (PEG) 0.94 2.00 2.78 1.91 1.97
Price to operating profit (P/OP) 10.56 10.28 18.38 12.50 14.18
Price to sales (P/S) 1.68 2.65 2.49 2.37 1.92
Price to book value (P/BV) 4.32 1.05 2.47 1.66 4.93

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

General Mills Inc., historical price multiples

Microsoft Excel LibreOffice Calc
May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014 May 26, 2013
Price to earnings (P/E) 12.32 19.14 25.09 27.74 17.81 16.91
Price to operating profit (P/OP) 10.47 12.36 15.73 16.31 10.99 11.00
Price to sales (P/S) 1.67 2.03 2.57 1.92 1.81 1.76
Price to book value (P/BV) 4.28 7.33 8.64 6.78 4.97 4.70
Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. General Mills Inc.'s P/E ratio declined from 2016 to 2017 and from 2017 to 2018.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. General Mills Inc.'s P/OP ratio declined from 2016 to 2017 and from 2017 to 2018.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. General Mills Inc.'s P/S ratio declined from 2016 to 2017 and from 2017 to 2018.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. General Mills Inc.'s P/BV ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Earnings (P/E)

General Mills Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014 May 26, 2013
No. shares of common stock outstanding1 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457 640,860,417
Selected Financial Data (USD $)
Net earnings attributable to General Mills (in thousands) 2,131,000  1,657,500  1,697,400  1,221,300  1,824,400  1,855,200 
Earnings per share (EPS)3 3.59 2.87 2.84 2.04 2.98 2.89
Share price1, 2 44.26 54.97 71.32 56.59 53.05 48.95
Ratio
P/E ratio4 12.32 19.14 25.09 27.74 17.81 16.91
Benchmarks
P/E Ratio, Competitors
Kraft Heinz Co. 7.85 32.77
Mondelēz International Inc. 21.45 41.76 8.59 27.92 14.69
P/E Ratio, Sector
Food Producers 11.60 33.04 23.15 23.32 15.40
P/E Ratio, Industry
Consumer Goods 20.55 19.00 20.47 21.82 16.94

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Mills Inc.'s Annual Report.

2018 Calculations

3 EPS = Net earnings attributable to General Mills ÷ No. shares of common stock outstanding
= 2,131,000,000 ÷ 593,367,848 = 3.59

4 P/E ratio = Share price ÷ EPS
= 44.26 ÷ 3.59 = 12.32

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. General Mills Inc.'s P/E ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Operating Profit (P/OP)

General Mills Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014 May 26, 2013
No. shares of common stock outstanding1 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457 640,860,417
Selected Financial Data (USD $)
Operating profit (in thousands) 2,509,300  2,566,400  2,707,400  2,077,300  2,957,400  2,851,800 
Operating profit per share3 4.23 4.45 4.53 3.47 4.83 4.45
Share price1, 2 44.26 54.97 71.32 56.59 53.05 48.95
Ratio
P/OP ratio4 10.47 12.36 15.73 16.31 10.99 11.00
Benchmarks
P/OP Ratio, Competitors
Kraft Heinz Co. 12.74 18.42 35.63
Mondelēz International Inc. 17.88 26.97 7.02 18.81 14.48
P/OP Ratio, Sector
Food Producers 14.07 19.70 13.98 15.08 13.02
P/OP Ratio, Industry
Consumer Goods 14.53 15.56 15.65 15.73 12.80

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Mills Inc.'s Annual Report.

2018 Calculations

3 Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 2,509,300,000 ÷ 593,367,848 = 4.23

4 P/OP ratio = Share price ÷ Operating profit per share
= 44.26 ÷ 4.23 = 10.47

Ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. General Mills Inc.'s P/OP ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Sales (P/S)

General Mills Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014 May 26, 2013
No. shares of common stock outstanding1 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457 640,860,417
Selected Financial Data (USD $)
Net sales (in thousands) 15,740,400  15,619,800  16,563,100  17,630,300  17,909,600  17,774,100 
Sales per share3 26.53 27.07 27.74 29.45 29.24 27.73
Share price1, 2 44.26 54.97 71.32 56.59 53.05 48.95
Ratio
P/S ratio4 1.67 2.03 2.57 1.92 1.81 1.76
Benchmarks
P/S Ratio, Competitors
Kraft Heinz Co. 3.29 4.27 5.13
Mondelēz International Inc. 2.42 2.67 2.11 1.78 1.63
P/S Ratio, Sector
Food Producers 2.67 3.26 2.90 1.79 1.67
P/S Ratio, Industry
Consumer Goods 1.97 1.98 1.83 1.67 1.50

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Mills Inc.'s Annual Report.

2018 Calculations

3 Sales per share = Net sales ÷ No. shares of common stock outstanding
= 15,740,400,000 ÷ 593,367,848 = 26.53

4 P/S ratio = Share price ÷ Sales per share
= 44.26 ÷ 26.53 = 1.67

Ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. General Mills Inc.'s P/S ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Book Value (P/BV)

General Mills Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014 May 26, 2013
No. shares of common stock outstanding1 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457 640,860,417
Selected Financial Data (USD $)
Stockholders' equity (in thousands) 6,141,100  4,327,900  4,930,200  4,996,700  6,534,800  6,672,200 
Book value per share (BVPS)3 10.35 7.50 8.26 8.35 10.67 10.41
Share price1, 2 44.26 54.97 71.32 56.59 53.05 48.95
Ratio
P/BV ratio4 4.28 7.33 8.64 6.78 4.97 4.70
Benchmarks
P/BV Ratio, Competitors
Kraft Heinz Co. 1.31 1.97 1.63
Mondelēz International Inc. 2.40 2.75 2.23 2.20 1.78
P/BV Ratio, Sector
Food Producers 1.87 2.57 2.10 2.73 2.28
P/BV Ratio, Industry
Consumer Goods 5.05 5.29 4.91 5.49 4.30

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of General Mills Inc.'s Annual Report.

2018 Calculations

3 BVPS = Stockholders' equity ÷ No. shares of common stock outstanding
= 6,141,100,000 ÷ 593,367,848 = 10.35

4 P/BV ratio = Share price ÷ BVPS
= 44.26 ÷ 10.35 = 4.28

Ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. General Mills Inc.'s P/BV ratio declined from 2016 to 2017 and from 2017 to 2018.