Lamb Weston Holdings, Inc. (LW) 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

+13.6%

$63.61

vs $55.99 price

Levered DCF

$59.85

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.61

Grey zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	20.37×	22.22×	17.81×	15.68×	49.27×	38.01×	24.64×	19.48×
P/B	3.24×	4.56×	7.23×	11.21×	27.44×	25.13×	37.52×	-1,978.71×
P/S	0.89×	1.23×	2×	2.96×	2.41×	3.29×	2.37×	2.42×
EV / EBITDA	9.91×	11.56×	12.18×	17.2×	19.04×	21.22×	15.16×	13.74×
Gross margin	20.6%	21.7%	27.3%	26.8%	20.3%	22.7%	23.6%	26.7%
Operating margin	8.9%	10.3%	16.5%	16.5%	10.8%	12.9%	14.7%	17.8%
Net margin	4.4%	5.5%	11.2%	18.9%	4.9%	8.7%	9.6%	12.7%
Current ratio	1.42×	1.38×	1.29×	1.56×	2.37×	2.88×	2.25×	1.74×
Debt / equity	2.16×	2.39×	2.15×	2.47×	7.63×	5.76×	14.87×	-505.78×
Interest coverage	3.27×	3.7×	7.84×	8.08×	2.76×	4.01×	5.16×	6.24×
Dividend yield	3.5%	2.6%	1.3%	0.9%	1.4%	1.1%	1.3%	1.2%
Payout ratio	71.6%	57.9%	24.0%	14.5%	68.9%	42.6%	33.2%	23.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	15.9%	20.6%	40.6%	71.5%	55.7%	66.1%	152.5%	-10404.3%
Return on invested capital	6.4%	7.3%	13.0%	11.6%	9.5%	9.7%	9.9%	20.0%
Return on assets	3.9%	4.8%	9.8%	15.5%	4.9%	7.5%	7.8%	15.7%
Free cash flow yield	9.1%	2.9%	-1.0%	0.7%	1.3%	3.4%	4.5%	3.8%
Earnings yield	4.9%	4.5%	5.6%	6.4%	2.0%	2.6%	4.1%	5.3%
Enterprise value	$9.8B	$12B	$16.7B	$19B	$12.1B	$14.1B	$11.2B	$11.4B
Net debt / EBITDA	3.92×	3.93×	2.76×	2.88×	3.5×	2.99×	2.98×	2.79×
Cash conversion cycle (days)	68	74	66	77	59	56	63	61