Hershey Co., current enterprise value calculation

Current share price (P)	$233.56
No. shares of common stock outstanding	204,467,895
US$ in thousands
Common equity (market value)¹	47,755,522)
Add: Preferred stock, shares issued: none (per books)	—)
Add: Noncontrolling interest in subsidiary (per books)	—)
Total equity	47,755,522)
Add: Short-term debt (per books)	693,790)
Add: Current portion of long-term debt (per books)	753,578)
Add: Long-term portion of long-term debt (per books)	3,343,977)
Total equity and debt	52,546,867)
Less: Cash and cash equivalents	463,889)
Enterprise value (EV)	52,082,978)

Based on: 10-K (reporting date: 2022-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 233.56 × 204,467,895

Hershey Co., EV calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Share price^1, 2	$240.69	$202.59	$151.29	$160.11	$110.22
No. shares of common stock outstanding¹	204,035,956	205,241,853	207,165,543	209,749,611	208,519,794
US$ in thousands
Common equity (market value)³	49,109,414)	41,579,947)	31,342,075)	33,583,010)	22,983,052)
Add: Preferred stock, shares issued: none (book value)	—)	—)	—)	—)	—)
Add: Noncontrolling interest in subsidiary (book value)	—)	—)	3,531)	5,772)	8,545)
Total equity	49,109,414)	41,579,947)	31,345,606)	33,588,782)	22,991,597)
Add: Short-term debt (book value)	693,790)	939,423)	74,041)	32,282)	1,197,929)
Add: Current portion of long-term debt (book value)	753,578)	2,844)	438,829)	703,390)	5,387)
Add: Long-term portion of long-term debt (book value)	3,343,977)	4,086,627)	4,089,755)	3,530,813)	3,254,280)
Total equity and debt	53,900,759)	46,608,841)	35,948,231)	37,855,267)	27,449,193)
Less: Cash and cash equivalents	463,889)	329,266)	1,143,987)	493,262)	587,998)
Enterprise value (EV)	53,436,870)	46,279,575)	34,804,244)	37,362,005)	26,861,195)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Hershey Co. Annual Report.

³ 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 240.69 × 204,035,956

The financial trajectory from 2018 to 2022 is characterized by a significant overall increase in valuation, despite a temporary contraction observed in 2020. The growth is reflected consistently across market capitalization, total equity, and enterprise value, indicating a sustained expansion of the company's total valuation over the five-year period.

Market Valuation Trends: Common equity market value experienced a sharp increase from 22.98 billion US$ in 2018 to 33.58 billion US$ in 2019. Following a moderate decline to 31.34 billion US$ in 2020, the valuation resumed an upward trend, reaching 41.58 billion US$ in 2021 and peaking at 49.11 billion US$ by the end of 2022. This represents a total increase of approximately 113% over the analyzed period.
Enterprise Value (EV) Dynamics: Enterprise value followed a pattern nearly identical to the market value of equity. Starting at 26.86 billion US$ in 2018, EV rose to 37.36 billion US$ in 2019, dipped to 34.80 billion US$ in 2020, and then grew steadily to 53.44 billion US$ by 2022. The close correlation between market equity and EV suggests that changes in the company's total valuation are primarily driven by equity market performance rather than drastic shifts in debt levels.
Capital Structure and Net Debt Implications: A consistent gap exists between total equity and debt and the calculated enterprise value. For example, in 2022, total equity and debt stood at 53.90 billion US$, while the enterprise value was slightly lower at 53.44 billion US$. This persistent difference indicates the presence of cash and cash equivalents that offset a portion of the total debt when calculating the enterprise value.
Equity Alignment: There is a near-perfect alignment between common equity market value and total equity throughout the reporting period. This indicates that the market valuation of the company's equity is closely mirrored by its total equity position, suggesting a stable relationship between book value and market perception.

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Hershey Co. (NYSE:HSY)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)