MCCORMICK & CO INC (MKC-V)

Miscellaneous Food Preparations & Kindred Products

Latest Price

$51.85

TTM P/E

8.63

Normalized P/E

15.44

Div Yield

3.59%

Book Value

25.99

P/B Ratio

2.00

Valuation metrics

EPS: $2.93

Book value / share: $21.29

Formula: √(22.5 × EPS × BVPS)

Graham Number

$37.47

34% downside

Norm. op. income: $1000M (median of 7yr)

Tax rate: 21%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$14.93

74% downside

Base FCF: $647M (median of recent 5yr)

Growth: -5%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$5.76

90% downside

EPS: $2.93

Target P/E: 17×

Formula: EPS × P/E

P/E Fair Value

$49.81

12% downside