The Hershey Company (HSY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+97.7%

$337.84

vs $170.88 price

Levered DCF

$337.17

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.35

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	41.93×	15.44×	20.51×	28.95×	27.06×	24.85×	26.77×	19.11×
P/B	7.98×	7.29×	9.31×	14.42×	14.51×	14.21×	17.7×	16.09×
P/S	3.16×	3.07×	3.42×	4.57×	4.46×	3.9×	3.85×	2.89×
EV / EBITDA	21.24×	12.59×	15.58×	21.45×	20.09×	18.23×	19.06×	14.24×
Gross margin	33.3%	47.3%	44.8%	43.2%	45.1%	45.4%	45.4%	45.9%
Operating margin	12.1%	25.9%	22.9%	21.7%	22.8%	21.9%	20.0%	20.8%
Net margin	7.6%	19.8%	16.7%	15.8%	16.5%	15.7%	14.4%	15.1%
Current ratio	1.19×	0.96×	0.97×	0.8×	0.9×	1.57×	1.05×	0.93×
Debt / equity	1.17×	1.16×	1.25×	1.55×	1.95×	2.16×	2.58×	3.19×
Interest coverage	6.83×	16.63×	15.86×	16.14×	15.74×	11.62×	10.49×	11.06×
Dividend yield	2.9%	3.2%	2.3%	1.6%	1.7%	2.0%	2.0%	2.5%
Payout ratio	122.9%	48.8%	47.8%	47.1%	46.4%	50.1%	53.1%	47.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.0%	47.1%	45.4%	49.8%	53.6%	57.2%	66.1%	84.2%
Return on invested capital	9.0%	23.7%	22.1%	21.2%	19.0%	19.5%	19.2%	20.8%
Return on assets	6.4%	17.2%	15.6%	15.0%	14.2%	14.0%	14.1%	15.3%
Free cash flow yield	4.7%	5.6%	4.1%	3.8%	4.0%	4.0%	4.7%	5.6%
Earnings yield	2.4%	6.5%	4.9%	3.5%	3.7%	4.0%	3.7%	5.2%
Enterprise value	$41.5B	$39.1B	$42.9B	$52.2B	$45B	$35.4B	$34.8B	$26.4B
Net debt / EBITDA	2.29×	1.52×	1.72×	1.91×	2.25×	1.89×	2.19×	2.09×
Cash conversion cycle (days)	31	54	69	37	49	59	48	52