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
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

General Mills Inc., current price multiples

	General Mills Inc.	Kraft Heinz Co.	Mondelēz International Inc.	Food Producers	Consumer Goods
Selected Financial Data
Current share price (P)	$52.77
No. shares of common stock outstanding	601,959,611
Growth rate (g)	11.80%

Earnings per share (EPS)	$2.91
Next year expected EPS	$3.26
Operating profit per share	$4.18
Sales per share	$28.02
Book value per share (BVPS)	$11.72
Ratios (Price Multiples)
Price to earnings (P/E)	18.12	—	23.39	—	25.25
Price to next year expected earnings	16.21	—	21.71	—	23.11
Price-earnings-growth (PEG)	1.54	—	3.02	—	2.72
Price to operating profit (P/OP)	12.63	—	23.87	—	21.21
Price to sales (P/S)	1.88	1.46	3.05	2.20	2.05
Price to book value (P/BV)	4.50	0.74	3.08	1.79	5.57

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.

General Mills Inc., historical price multiples

	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.

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

	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)³	2.91	3.59	2.87	2.84	2.04	2.98
Share price^1, 2	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, Competitors
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	—	21.83	20.55	19.00	20.47	21.82

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

2019 Calculations

³ EPS = Net earnings attributable to General Mills ÷ No. shares of common stock outstanding
= 1,752,700,000 ÷ 601,959,611 = 2.91

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

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.

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

	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 share³	4.18	4.23	4.45	4.53	3.47	4.83
Share price^1, 2	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, Competitors
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	—	18.33	14.53	15.56	15.65	15.73

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

2019 Calculations

³ Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 2,515,900,000 ÷ 601,959,611 = 4.18

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

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.

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

	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 share³	28.02	26.53	27.07	27.74	29.45	29.24
Share price^1, 2	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, Competitors
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	—	1.77	1.97	1.98	1.83	1.67

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

2019 Calculations

³ Sales per share = Net sales ÷ No. shares of common stock outstanding
= 16,865,200,000 ÷ 601,959,611 = 28.02

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

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.

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

	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)³	11.72	10.35	7.50	8.26	8.35	10.67
Share price^1, 2	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, Competitors
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	—	4.81	5.05	5.29	4.91	5.49

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

2019 Calculations

³ BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,054,500,000 ÷ 601,959,611 = 11.72

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

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.

General Mills Inc. (GIS)

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)