Common Stock Valuation Ratios (Price Multiples)
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
Kellanova, current price multiples
| Kellanova | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $62.05 | |||||||||
| No. shares of common stock outstanding | 342,287,795 | |||||||||
| Growth rate (g) | 9.38% | |||||||||
| Earnings per share (EPS) | $2.78 | |||||||||
| Next year expected EPS | $3.04 | |||||||||
| Operating profit per share | $4.40 | |||||||||
| Sales per share | $38.34 | |||||||||
| Book value per share (BVPS) | $9.28 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 22.33 | 29.47 | 32.18 | 20.95 | 27.74 | 29.26 | 39.90 | |||
| Price to next year expected earnings | 20.42 | 26.67 | 30.59 | 18.69 | — | 26.02 | 35.71 | |||
| Price-earnings-growth (PEG) | 2.38 | 2.80 | 6.20 | 1.73 | — | 2.35 | 3.40 | |||
| Price to operating profit (P/OP) | 14.11 | 28.07 | 22.23 | 15.01 | 21.14 | 23.61 | 29.72 | |||
| Price to sales (P/S) | 1.62 | 8.06 | 2.05 | 1.84 | 7.75 | 4.57 | 2.17 | |||
| Price to book value (P/BV) | 6.69 | 12.01 | 3.05 | 8.46 | — | 15.48 | 12.20 | |||
Based on: 10-K (reporting date: 2023-12-30).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Kellanova, historical price multiples
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
An evaluation of valuation multiples from 2019 through 2023 reveals a general contraction in market premiums relative to fundamental metrics, characterized by a period of volatility in earnings-based multiples and a steady decline in book value premiums.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits significant fluctuation over the five-year period. Starting at 22.98 in 2019, the ratio declined to a low of 15.18 by 2021. A sharp increase to 24.54 was recorded in 2022, followed by a correction to 20.11 in 2023. This volatility indicates varying investor expectations regarding earnings growth and net income stability.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio followed a trend similar to the P/E ratio but with less extreme variance. A decrease from 15.75 in 2019 to 11.57 in 2020 was observed, followed by a gradual recovery to 14.41 in 2022. The period ended with a ratio of 12.71 in 2023, reflecting a lower overall valuation relative to operating profit than was present at the start of the period.
- Price to Sales (P/S) Ratio
- Revenue-based valuation remained the most stable of the analyzed metrics. The P/S ratio moved from 1.62 in 2019 to 1.46 in 2023. This slight downward trend suggests a marginal and consistent compression in the price the market is willing to pay per unit of sales.
- Price to Book Value (P/BV) Ratio
- A consistent downward trajectory is observed in the P/BV ratio, which fell from 8.03 in 2019 to 6.02 in 2023. The most pronounced decline occurred between 2019 and 2020, after which the ratio stabilized, fluctuating minimally between 5.98 and 6.07 from 2021 through 2023.
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Price to Earnings (P/E)
Kellanova, historical P/E calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 340,678,265 | 341,830,292 | 341,674,873 | 343,950,311 | 342,054,365 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Kellanova (in millions) | 951) | 960) | 1,488) | 1,251) | 960) | |
| Earnings per share (EPS)2 | 2.79 | 2.81 | 4.36 | 3.64 | 2.81 | |
| Share price1, 3 | 56.13 | 68.91 | 66.12 | 59.26 | 64.50 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 20.11 | 24.54 | 15.18 | 16.29 | 22.98 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 24.43 | 27.12 | 27.63 | — | — | |
| Mondelēz International Inc. | 20.87 | 33.07 | 21.64 | — | — | |
| PepsiCo Inc. | 25.40 | 26.71 | 30.58 | — | — | |
| Philip Morris International Inc. | 17.69 | 17.54 | 18.37 | — | — | |
| P/E Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 22.54 | 24.66 | 24.78 | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Staples | 26.62 | 25.35 | 26.07 | — | — | |
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income attributable to Kellanova ÷ No. shares of common stock outstanding
= 951,000,000 ÷ 340,678,265 = 2.79
3 Closing price as at the filing date of Kellanova Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 56.13 ÷ 2.79 = 20.11
5 Click competitor name to see calculations.
An analysis of the five-year period from 2019 to 2023 reveals significant volatility in valuation multiples, driven by an inverse relationship between earnings growth and market valuation during the mid-period, followed by a general decline in both share price and earnings toward the end of the term.
- Earnings Per Share (EPS) Performance
- EPS exhibited a growth trend in the first three years, rising from 2.81 US$ in 2019 to a peak of 4.36 US$ in 2021. This upward trajectory was reversed in 2022, when earnings fell sharply to 2.81 US$, effectively returning to 2019 levels. Earnings remained relatively stagnant into 2023, closing at 2.79 US$.
- Share Price Fluctuations
- The share price showed inconsistent movement, decreasing initially in 2020 before climbing to a five-year peak of 68.91 US$ in 2022. However, 2023 saw a significant correction, with the price dropping to 56.13 US$, the lowest value recorded in the analyzed timeframe.
- Price to Earnings (P/E) Ratio Analysis
- The P/E ratio underwent a notable contraction between 2019 and 2021, falling from 22.98 to 15.18. This indicates that while earnings were increasing, the market price did not keep pace, leading to a lower valuation multiple. A sharp expansion occurred in 2022, where the P/E ratio spiked to 24.54; this was the result of a simultaneous decline in EPS and an increase in share price. By 2023, the ratio moderated to 20.11 as the share price declined more rapidly than the earnings per share.
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Price to Operating Profit (P/OP)
Kellanova, historical P/OP calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 340,678,265 | 341,830,292 | 341,674,873 | 343,950,311 | 342,054,365 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 1,505) | 1,635) | 1,752) | 1,761) | 1,401) | |
| Operating profit per share2 | 4.42 | 4.78 | 5.13 | 5.12 | 4.10 | |
| Share price1, 3 | 56.13 | 68.91 | 66.12 | 59.26 | 64.50 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 12.71 | 14.41 | 12.89 | 11.57 | 15.75 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 23.14 | 23.72 | 26.19 | — | — | |
| Mondelēz International Inc. | 18.81 | 25.43 | 20.00 | — | — | |
| PepsiCo Inc. | 19.23 | 20.67 | 20.87 | — | — | |
| Philip Morris International Inc. | 11.96 | 12.96 | 12.90 | — | — | |
| P/OP Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 18.19 | 19.51 | 19.52 | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Staples | 19.82 | 18.28 | 19.01 | — | — | |
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 1,505,000,000 ÷ 340,678,265 = 4.42
3 Closing price as at the filing date of Kellanova Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 56.13 ÷ 4.42 = 12.71
5 Click competitor name to see calculations.
Between 2019 and 2023, the Price to Operating Profit (P/OP) ratio exhibited notable volatility, starting at a five-year peak of 15.75 and concluding the period at 12.71. The valuation trend was characterized by an initial sharp contraction, a moderate recovery phase, and a final decrease in the most recent fiscal year.
- Share Price Trends
- The share price demonstrated inconsistent movement, decreasing from 64.50 in 2019 to 59.26 in 2020 before climbing to a peak of 68.91 in 2022. A significant correction occurred in 2023, with the price falling to 56.13, the lowest value observed in the five-year sequence.
- Operating Profit per Share Performance
- Operating profit per share showed an initial growth phase, rising from 4.10 in 2019 to a peak of 5.13 in 2021. Following this peak, a steady decline was observed, with values dropping to 4.78 in 2022 and further to 4.42 in 2023.
- P/OP Ratio Analysis
- The P/OP ratio experienced its most significant compression in 2020, falling to 11.57. This decline was driven by a reduction in share price despite an improvement in operating profit per share. A subsequent upward trend saw the ratio reach 14.41 by 2022, reflecting a market willingness to pay a higher multiple for operating earnings. However, the ratio contracted to 12.71 in 2023, as the decrease in share price outpaced the decline in operating profit per share.
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Price to Sales (P/S)
Kellanova, historical P/S calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 340,678,265 | 341,830,292 | 341,674,873 | 343,950,311 | 342,054,365 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 13,122) | 15,315) | 14,181) | 13,770) | 13,578) | |
| Sales per share2 | 38.52 | 44.80 | 41.50 | 40.03 | 39.70 | |
| Share price1, 3 | 56.13 | 68.91 | 66.12 | 59.26 | 64.50 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.46 | 1.54 | 1.59 | 1.48 | 1.62 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 5.72 | 6.02 | 6.99 | — | — | |
| Mondelēz International Inc. | 2.87 | 2.85 | 3.24 | — | — | |
| PepsiCo Inc. | 2.52 | 2.75 | 2.93 | — | — | |
| Philip Morris International Inc. | 3.93 | 5.00 | 5.33 | — | — | |
| P/S Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 3.52 | 3.87 | 4.28 | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Staples | 1.45 | 1.54 | 1.61 | — | — | |
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 13,122,000,000 ÷ 340,678,265 = 38.52
3 Closing price as at the filing date of Kellanova Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 56.13 ÷ 38.52 = 1.46
5 Click competitor name to see calculations.
The Price to Sales (P/S) ratio exhibits a general downward trajectory over the analyzed five-year period, indicating a compression in the valuation multiple applied to the company's revenue. The ratio decreased from 1.62 in 2019 to 1.46 by the end of 2023, reflecting an overall reduction in the market valuation relative to sales.
- Share Price and Revenue Performance
- The share price demonstrated volatility, peaking at 68.91 in 2022 before declining to a period low of 56.13 in 2023. Parallel to this, sales per share showed steady growth from 39.70 in 2019 to a high of 44.80 in 2022, followed by a significant contraction to 38.52 in 2023.
- P/S Ratio Fluctuations
- The P/S ratio remained within a narrow range between 1.46 and 1.62. After an initial drop to 1.48 in 2020, the ratio saw a moderate recovery to 1.59 in 2021 and 1.54 in 2022, before reaching its minimum value of 1.46 in 2023.
- Valuation Analysis
- The contraction of the P/S ratio in 2023 suggests a decrease in the premium investors are willing to pay for each dollar of revenue. This decline is attributable to the share price falling more sharply than the decrease in sales per share during the final year of the period.
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Price to Book Value (P/BV)
Kellanova, historical P/BV calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 340,678,265 | 341,830,292 | 341,674,873 | 343,950,311 | 342,054,365 | |
| Selected Financial Data (US$) | ||||||
| Total Kellanova equity (in millions) | 3,175) | 3,941) | 3,720) | 3,112) | 2,747) | |
| Book value per share (BVPS)2 | 9.32 | 11.53 | 10.89 | 9.05 | 8.03 | |
| Share price1, 3 | 56.13 | 68.91 | 66.12 | 59.26 | 64.50 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 6.02 | 5.98 | 6.07 | 6.55 | 8.03 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 10.09 | 10.73 | 11.74 | — | — | |
| Mondelēz International Inc. | 3.65 | 3.34 | 3.29 | — | — | |
| PepsiCo Inc. | 12.45 | 13.88 | 14.52 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 11.92 | 12.59 | 13.34 | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Staples | 8.14 | 8.11 | 8.15 | — | — | |
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Total Kellanova equity ÷ No. shares of common stock outstanding
= 3,175,000,000 ÷ 340,678,265 = 9.32
3 Closing price as at the filing date of Kellanova Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 56.13 ÷ 9.32 = 6.02
5 Click competitor name to see calculations.
The analysis of the Price to Book Value (P/BV) ratio from 2019 to 2023 reveals a general trend of valuation compression followed by a period of stabilization. While the share price experienced volatility throughout the period, the overall P/BV ratio declined from a peak of 8.03 in 2019 to 6.02 by the end of 2023.
- Price to Book Value (P/BV) Trend
- A consistent downward trajectory is observed between 2019 and 2022, with the ratio falling from 8.03 to 5.98. This compression indicates that the market premium paid relative to the accounting value of the company's net assets decreased over this four-year span. From 2022 to 2023, the ratio remained nearly flat, moving from 5.98 to 6.02, suggesting a stabilization in valuation multiples.
- Book Value Per Share (BVPS) Dynamics
- BVPS demonstrated a steady upward trend from 2019 through 2022, rising from US$ 8.03 to US$ 11.53. This growth in the underlying equity base contributed to the decline in the P/BV ratio. However, this trend reversed in 2023, with BVPS dropping to US$ 9.32, indicating a reduction in the net asset value per share.
- Share Price Correlation
- The share price fluctuated, starting at US$ 64.50 in 2019 and reaching a peak of US$ 68.91 in 2022 before declining to US$ 56.13 in 2023. The stabilization of the P/BV ratio in 2023 is attributable to the simultaneous decline in both the share price and the book value per share, which offset one another in the valuation calculation.
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