MKC
McCormick & Company, Incorporated
$51.70
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 20.4% below fair value
You pay
$51.70
Bear
$53.50
Fair
$64.96
Bull
$76.43
Bear
$53.50
+3.5%
$3.91 × 14x P/E
Fair
$64.96
+25.7%
$3.91 × 17x P/E
Bull
$76.43
+47.8%
$3.91 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
13.2x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $61.40 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $64.96 per share.
Warnings
The company's reported profits differ from official accounting profits by 33%. Check what costs are being left out of the adjusted number.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples