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General Mills Inc. (GIS)


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

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General Mills Inc. Kraft Heinz Co. Mondelēz International Inc. Food Producers Consumer Goods
Selected Financial Data
Current share price (P) $54.33
No. shares of common stock outstanding 604,393,769
Growth rate (g) 11.80%
 
Earnings per share (EPS) $2.90
Next year expected EPS $3.24
Operating profit per share $4.16
Sales per share $27.90
Book value per share (BVPS) $11.67
Ratios (Price Multiples)
Price to earnings (P/E) 18.73 23.31 25.57
Price to next year expected earnings 16.76 21.64 23.58
Price-earnings-growth (PEG) 1.59 3.01 3.02
Price to operating profit (P/OP) 13.05 23.80 21.25
Price to sales (P/S) 1.95 1.31 3.04 2.15 2.08
Price to book value (P/BV) 4.65 0.66 3.07 1.75 5.65

Based on: 10-K (filing date: 2019-06-28).

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

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Price to earnings (P/E) 18.04 12.32 19.14 25.09 27.74 17.81
Price to operating profit (P/OP) 12.57 10.47 12.36 15.73 16.31 10.99
Price to sales (P/S) 1.87 1.67 2.03 2.57 1.92 1.81
Price to book value (P/BV) 4.48 4.28 7.33 8.64 6.78 4.97

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
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 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Earnings (P/E)

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

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
No. shares of common stock outstanding1 601,959,611 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457
Selected Financial Data (USD $)
Net earnings attributable to General Mills (in thousands) 1,752,700  2,131,000  1,657,500  1,697,400  1,221,300  1,824,400 
Earnings per share (EPS)2 2.91 3.59 2.87 2.84 2.04 2.98
Share price1, 3 52.52 44.26 54.97 71.32 56.59 53.05
Ratio
P/E ratio4 18.04 12.32 19.14 25.09 27.74 17.81
Benchmarks
P/E Ratio, Competitors5
Kraft Heinz Co. 7.85 32.77
Mondelēz International Inc. 20.03 21.45 41.76 8.59 27.92
P/E Ratio, Sector
Food Producers 11.60 33.04 23.15 23.32
P/E Ratio, Industry
Consumer Goods 22.27 20.75 19.16 20.60 21.87

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net earnings attributable to General Mills ÷ No. shares of common stock outstanding
= 1,752,700,000 ÷ 601,959,611 = 2.91

3 Close price on the filing date of General Mills Inc.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 52.52 ÷ 2.91 = 18.04

5 Click competitor name to see calculations.

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 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Operating Profit (P/OP)

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

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
No. shares of common stock outstanding1 601,959,611 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457
Selected Financial Data (USD $)
Operating profit (in thousands) 2,515,900  2,509,300  2,566,400  2,707,400  2,077,300  2,957,400 
Operating profit per share2 4.18 4.23 4.45 4.53 3.47 4.83
Share price1, 3 52.52 44.26 54.97 71.32 56.59 53.05
Ratio
P/OP ratio4 12.57 10.47 12.36 15.73 16.31 10.99
Benchmarks
P/OP Ratio, Competitors5
Kraft Heinz Co. 12.74 18.42 35.63
Mondelēz International Inc. 20.45 17.88 26.97 7.02 18.81
P/OP Ratio, Sector
Food Producers 14.07 19.70 13.98 15.08
P/OP Ratio, Industry
Consumer Goods 18.51 14.68 15.65 15.71 15.74

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 2,515,900,000 ÷ 601,959,611 = 4.18

3 Close price on the filing date of General Mills Inc.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 52.52 ÷ 4.18 = 12.57

5 Click competitor name to see calculations.

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 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
No. shares of common stock outstanding1 601,959,611 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457
Selected Financial Data (USD $)
Net sales (in thousands) 16,865,200  15,740,400  15,619,800  16,563,100  17,630,300  17,909,600 
Sales per share2 28.02 26.53 27.07 27.74 29.45 29.24
Share price1, 3 52.52 44.26 54.97 71.32 56.59 53.05
Ratio
P/S ratio4 1.87 1.67 2.03 2.57 1.92 1.81
Benchmarks
P/S Ratio, Competitors5
Kraft Heinz Co. 1.33 3.29 4.27 5.13
Mondelēz International Inc. 2.61 2.42 2.67 2.11 1.78
P/S Ratio, Sector
Food Producers 1.90 2.67 3.26 2.90 1.79
P/S Ratio, Industry
Consumer Goods 1.81 1.99 2.00 1.85 1.69

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 16,865,200,000 ÷ 601,959,611 = 28.02

3 Close price on the filing date of General Mills Inc.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 52.52 ÷ 28.02 = 1.87

5 Click competitor name to see calculations.

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 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
No. shares of common stock outstanding1 601,959,611 593,367,848 577,099,679 597,020,906 598,737,719 612,508,457
Selected Financial Data (USD $)
Stockholders’ equity (in thousands) 7,054,500  6,141,100  4,327,900  4,930,200  4,996,700  6,534,800 
Book value per share (BVPS)2 11.72 10.35 7.50 8.26 8.35 10.67
Share price1, 3 52.52 44.26 54.97 71.32 56.59 53.05
Ratio
P/BV ratio4 4.48 4.28 7.33 8.64 6.78 4.97
Benchmarks
P/BV Ratio, Competitors5
Kraft Heinz Co. 0.68 1.31 1.97 1.63
Mondelēz International Inc. 2.64 2.40 2.75 2.23 2.20
P/BV Ratio, Sector
Food Producers 1.55 1.87 2.57 2.10 2.73
P/BV Ratio, Industry
Consumer Goods 4.92 5.11 5.35 4.96 5.52

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,054,500,000 ÷ 601,959,611 = 11.72

3 Close price on the filing date of General Mills Inc.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 52.52 ÷ 11.72 = 4.48

5 Click competitor name to see calculations.

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 2017 to 2018 but then slightly increased from 2018 to 2019.