Price to Earnings (P/E)
since 2005
Calculation
Hershey Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to The Hershey Company1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 17, 2023 | 29.86 | = | 240.69 | ÷ | 8.06 | 8.06 | = | 1,644,817 | ÷ | 204,035,956 | |
| Feb 18, 2022 | 28.14 | = | 202.59 | ÷ | 7.20 | 7.20 | = | 1,477,512 | ÷ | 205,241,853 | |
| Feb 17, 2021 | 24.51 | = | 151.29 | ÷ | 6.17 | 6.17 | = | 1,278,708 | ÷ | 207,165,543 | |
| Feb 20, 2020 | 29.21 | = | 160.11 | ÷ | 5.48 | 5.48 | = | 1,149,692 | ÷ | 209,749,611 | |
| Feb 22, 2019 | 19.52 | = | 110.22 | ÷ | 5.65 | 5.65 | = | 1,177,562 | ÷ | 208,519,794 | |
| Feb 27, 2018 | 26.40 | = | 98.19 | ÷ | 3.72 | 3.72 | = | 782,981 | ÷ | 210,483,774 | |
| Feb 21, 2017 | 32.00 | = | 108.48 | ÷ | 3.39 | 3.39 | = | 720,044 | ÷ | 212,414,672 | |
| Feb 26, 2016 | 38.25 | = | 90.62 | ÷ | 2.37 | 2.37 | = | 512,951 | ÷ | 216,519,701 | |
| Feb 20, 2015 | 27.96 | = | 107.24 | ÷ | 3.84 | 3.84 | = | 846,912 | ÷ | 220,828,040 | |
| Feb 21, 2014 | 29.38 | = | 107.70 | ÷ | 3.67 | 3.67 | = | 820,470 | ÷ | 223,805,223 | |
| Feb 22, 2013 | 27.54 | = | 81.23 | ÷ | 2.95 | 2.95 | = | 660,931 | ÷ | 224,087,596 | |
| Feb 17, 2012 | 21.82 | = | 60.86 | ÷ | 2.79 | 2.79 | = | 628,962 | ÷ | 225,520,177 | |
| Feb 18, 2011 | 22.44 | = | 50.33 | ÷ | 2.24 | 2.24 | = | 509,799 | ÷ | 227,301,799 | |
| Feb 19, 2010 | 20.89 | = | 39.97 | ÷ | 1.91 | 1.91 | = | 435,994 | ÷ | 227,922,429 | |
| Feb 20, 2009 | 25.25 | = | 34.64 | ÷ | 1.37 | 1.37 | = | 311,405 | ÷ | 226,993,240 | |
| Feb 19, 2008 | 39.33 | = | 37.05 | ÷ | 0.94 | 0.94 | = | 214,154 | ÷ | 227,314,176 | |
| Feb 23, 2007 | 21.91 | = | 53.09 | ÷ | 2.42 | 2.42 | = | 559,061 | ÷ | 230,758,373 | |
| Feb 28, 2006 | 24.78 | = | 51.15 | ÷ | 2.06 | 2.06 | = | 493,244 | ÷ | 238,949,667 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Hershey Co. Annual Report.
The financial trajectory from 2006 to 2023 is characterized by a substantial long-term increase in both equity value and profitability. Share prices rose from 51.15 US$ to 240.69 US$, while earnings per share (EPS) grew from 2.06 US$ to 8.06 US$. This indicates a sustained expansion of the company's market valuation supported by a general upward trend in fundamental earnings.
- Price-to-Earnings (P/E) Volatility
- The P/E ratio exhibited significant fluctuations over the analyzed period, ranging from a minimum of 19.52 to a maximum of 39.33. Notable peaks occurred in 2008 and 2016, where ratios reached 39.33 and 38.25, respectively. These spikes correlate with sharp declines in EPS during those specific years, suggesting that the market price remained resilient despite temporary contractions in profitability.
- Valuation Efficiency and Earnings Growth
- A period of high valuation efficiency is observed in 2019, when the P/E ratio reached its lowest point of 19.52. This decline in the ratio was driven by a significant jump in EPS to 5.65 US$, indicating a phase where earnings growth outpaced the appreciation of the share price.
- Recent Valuation Trends
- From 2020 to 2023, the P/E ratio stabilized within a tighter range between 24.51 and 29.86. This stability, occurring alongside a steady climb in EPS to 8.06 US$ and a share price increase to 240.69 US$, suggests a normalized market valuation relative to the company's current earning power.
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Comparison to Competitors
Hershey Co., P/E, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 17, 2023 | 29.86 | 27.12 | 33.07 | 26.71 | 17.54 |
| Feb 18, 2022 | 28.14 | 27.63 | 21.64 | 30.58 | 18.37 |
| Feb 17, 2021 | 24.51 | 27.91 | 22.33 | 26.15 | 16.55 |
| Feb 20, 2020 | 29.21 | 28.21 | 21.72 | 27.83 | 18.94 |
| Feb 22, 2019 | 19.52 | 30.47 | 20.03 | 13.01 | 15.08 |
| Feb 27, 2018 | 26.40 | 150.54 | 21.45 | 32.81 | 26.52 |
| Feb 21, 2017 | 32.00 | 27.48 | 41.76 | 24.09 | 22.84 |
| Feb 26, 2016 | 38.25 | 26.01 | 8.59 | 25.72 | 20.57 |
| Feb 20, 2015 | 27.96 | 25.87 | 27.92 | 22.86 | 17.14 |
| Feb 21, 2014 | 29.38 | 19.54 | 14.69 | 17.66 | 14.60 |
| Feb 22, 2013 | 27.54 | 19.00 | 15.56 | 18.84 | 17.49 |
| Feb 17, 2012 | 21.82 | 18.27 | 19.01 | 15.45 | 16.64 |
| Feb 18, 2011 | 22.44 | 12.42 | 13.54 | 15.93 | 15.41 |
| Feb 19, 2010 | 20.89 | 17.81 | 14.11 | 16.49 | 14.53 |
| Feb 20, 2009 | 25.25 | 16.37 | 11.54 | 15.82 | 9.95 |
| Feb 19, 2008 | 39.33 | 23.10 | 18.67 | 20.35 | — |
| Feb 23, 2007 | 21.91 | 21.69 | 17.35 | 18.79 | — |
| Feb 28, 2006 | 24.78 | 20.40 | 19.38 | 24.28 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Hershey Co., P/E, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 17, 2023 | 29.86 | 24.66 |
| Feb 18, 2022 | 28.14 | 24.78 |
| Feb 17, 2021 | 24.51 | 23.23 |
| Feb 20, 2020 | 29.21 | 24.75 |
| Feb 22, 2019 | 19.52 | 18.05 |
| Feb 27, 2018 | 26.40 | 37.84 |
| Feb 21, 2017 | 32.00 | 26.08 |
| Feb 26, 2016 | 38.25 | 19.86 |
| Feb 20, 2015 | 27.96 | 22.41 |
| Feb 21, 2014 | 29.38 | 16.88 |
| Feb 22, 2013 | 27.54 | 18.09 |
| Feb 17, 2012 | 21.82 | 17.18 |
| Feb 18, 2011 | 22.44 | 14.06 |
| Feb 19, 2010 | 20.89 | 16.01 |
| Feb 20, 2009 | 25.25 | 13.43 |
| Feb 19, 2008 | 39.33 | 21.20 |
| Feb 23, 2007 | 21.91 | 19.54 |
| Feb 28, 2006 | 24.78 | 21.53 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Hershey Co., P/E, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Feb 17, 2023 | 29.86 | 25.35 |
| Feb 18, 2022 | 28.14 | 26.07 |
| Feb 17, 2021 | 24.51 | 24.12 |
| Feb 20, 2020 | 29.21 | 31.92 |
| Feb 22, 2019 | 19.52 | 20.62 |
| Feb 27, 2018 | 26.40 | 22.78 |
| Feb 21, 2017 | 32.00 | 21.50 |
| Feb 26, 2016 | 38.25 | 21.97 |
| Feb 20, 2015 | 27.96 | 19.71 |
| Feb 21, 2014 | 29.38 | 17.00 |
| Feb 22, 2013 | 27.54 | 16.60 |
| Feb 17, 2012 | 21.82 | 14.81 |
| Feb 18, 2011 | 22.44 | 14.32 |
| Feb 19, 2010 | 20.89 | 14.63 |
| Feb 20, 2009 | 25.25 | 15.52 |
| Feb 19, 2008 | 39.33 | 19.68 |
| Feb 23, 2007 | 21.91 | 19.79 |
| Feb 28, 2006 | 24.78 | 20.04 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).