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
Kraft Heinz Co., current price multiples
| Kraft Heinz Co. | Altria Group Inc. | Coca-Cola Co. | PepsiCo Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $34.38 | |||||||||
| No. shares of common stock outstanding | 1,222,578,592 | |||||||||
| Growth rate (g) | 0.58% | |||||||||
| Earnings per share (EPS) | $1.58 | |||||||||
| Next year expected EPS | $1.59 | |||||||||
| Operating profit per share | $2.51 | |||||||||
| Sales per share | $20.43 | |||||||||
| Book value per share (BVPS) | $42.22 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 21.72 | 11.22 | 25.15 | 23.10 | 24.72 | 34.51 | 61.09 | |||
| Price to next year expected earnings | 21.60 | 27.26 | 23.11 | 20.50 | — | 39.17 | 61.88 | |||
| Price-earnings-growth (PEG) | 37.54 | — | 2.86 | 1.82 | — | — | — | |||
| Price to operating profit (P/OP) | 13.69 | 7.90 | 23.82 | 17.49 | 16.71 | 18.52 | 30.75 | |||
| Price to sales (P/S) | 1.68 | 3.73 | 5.89 | 2.29 | 5.49 | 4.79 | 2.48 | |||
| Price to book value (P/BV) | 0.81 | — | 10.39 | 11.33 | — | 26.87 | 13.65 | |||
Based on: 10-K (reporting date: 2019-12-28).
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)
Kraft Heinz Co., historical price multiples
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| Valuation 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. | Kraft Heinz Co. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Kraft Heinz Co. P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Earnings (P/E)
Kraft Heinz Co., historical P/E calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,221,399,549 | 1,219,938,804 | 1,218,801,890 | 1,217,136,057 | 1,215,189,526 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common shareholders (in millions) | 1,935) | (10,192) | 10,999) | 3,452) | (266) | |
| Earnings per share (EPS)2 | 1.58 | -8.35 | 9.02 | 2.84 | -0.22 | |
| Share price1, 3 | 26.88 | 28.74 | 70.80 | 92.94 | 77.37 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 16.97 | — | 7.85 | 32.77 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | 28.21 | — | — | — | — | |
| PepsiCo Inc. | 27.83 | — | — | — | — | |
| Philip Morris International Inc. | 18.94 | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 30.29 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Staples | 36.02 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
EPS = Net income (loss) attributable to common shareholders ÷ No. shares of common stock outstanding
= 1,935,000,000 ÷ 1,221,399,549 = 1.58
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 26.88 ÷ 1.58 = 16.97
5 Click competitor name to see calculations.
Price to Operating Profit (P/OP)
Kraft Heinz Co., historical P/OP calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,221,399,549 | 1,219,938,804 | 1,218,801,890 | 1,217,136,057 | 1,215,189,526 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 3,070) | (10,220) | 6,773) | 6,142) | 2,639) | |
| Operating profit per share2 | 2.51 | -8.38 | 5.56 | 5.05 | 2.17 | |
| Share price1, 3 | 26.88 | 28.74 | 70.80 | 92.94 | 77.37 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 10.69 | — | 12.74 | 18.42 | 35.63 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Altria Group Inc. | 7.65 | — | — | — | — | |
| Coca-Cola Co. | 24.95 | — | — | — | — | |
| PepsiCo Inc. | 19.78 | — | — | — | — | |
| Philip Morris International Inc. | 12.92 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 16.25 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Staples | 18.13 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 3,070,000,000 ÷ 1,221,399,549 = 2.51
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 26.88 ÷ 2.51 = 10.69
5 Click competitor name to see calculations.
Price to Sales (P/S)
Kraft Heinz Co., historical P/S calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,221,399,549 | 1,219,938,804 | 1,218,801,890 | 1,217,136,057 | 1,215,189,526 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 24,977) | 26,268) | 26,232) | 26,487) | 18,338) | |
| Sales per share2 | 20.45 | 21.53 | 21.52 | 21.76 | 15.09 | |
| Share price1, 3 | 26.88 | 28.74 | 70.80 | 92.94 | 77.37 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.31 | 1.33 | 3.29 | 4.27 | 5.13 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Altria Group Inc. | 3.14 | — | — | — | — | |
| Coca-Cola Co. | 6.75 | — | — | — | — | |
| PepsiCo Inc. | 3.03 | — | — | — | — | |
| Philip Morris International Inc. | 4.57 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 4.21 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Staples | 1.46 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 24,977,000,000 ÷ 1,221,399,549 = 20.45
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 26.88 ÷ 20.45 = 1.31
5 Click competitor name to see calculations.
| Valuation 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. | Kraft Heinz Co. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Book Value (P/BV)
Kraft Heinz Co., historical P/BV calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,221,399,549 | 1,219,938,804 | 1,218,801,890 | 1,217,136,057 | 1,215,189,526 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | 51,623) | 51,657) | 66,034) | 57,358) | 57,685) | |
| Book value per share (BVPS)2 | 42.27 | 42.34 | 54.18 | 47.13 | 47.47 | |
| Share price1, 3 | 26.88 | 28.74 | 70.80 | 92.94 | 77.37 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 0.64 | 0.68 | 1.31 | 1.97 | 1.63 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Altria Group Inc. | 12.69 | — | — | — | — | |
| Coca-Cola Co. | 13.26 | — | — | — | — | |
| PepsiCo Inc. | 13.76 | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 23.59 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Staples | 8.05 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 51,623,000,000 ÷ 1,221,399,549 = 42.27
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 26.88 ÷ 42.27 = 0.64
5 Click competitor name to see calculations.
| Valuation 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 required rate of return and its actual rate of return. | Kraft Heinz Co. P/BV ratio decreased from 2017 to 2018 and from 2018 to 2019. |