Conagra Brands, Inc. (CAG) Stock Valuation — PE Analysis
Packaged Foods · NYSE
Current Price
$13.74
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Conagra owns a portfolio of well-established brands like Healthy Choice and Slim Jim, fostering consumer trust and repeat purchases. This recognition creates a barrier to entry for new competitors.
↑Distribution Network Strength
The company benefits from extensive relationships with retailers and a robust supply chain. This allows for efficient product placement and availability across numerous channels.
↑Scale and Efficiency
Conagra's large operational scale enables cost efficiencies in procurement and manufacturing. This competitive cost structure supports its pricing strategies.
INVESTMENT RISKS
↓Input Cost Volatility
Rising commodity prices, such as tomatoes, can significantly impact profitability. The company's ability to pass these costs onto consumers is not guaranteed.
↓Dividend Sustainability Concerns
Recent reports highlight potential trouble for Conagra's high dividend yield. A dividend cut could negatively impact investor sentiment and stock price.
↓Intense Competition
The packaged foods industry is highly competitive, with numerous players vying for market share. Innovation and marketing are crucial to maintain relevance.
Customize the CAG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Conagra Brands, Inc. respond.
Open PE Calculator for CAGCompany Overview
Conagra Brands, Inc., a prominent manufacturer of packaged food products, conducts its business across North America through its various subsidiary companies. The firm organizes its extensive operations into four distinct segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks division primarily distributes non-perishable food items through various retail channels within the United States. In contrast, the Refrigerated & Frozen segment focuses on supplying temperature-sensitive food products to comparable U.S. retail outlets. Its International division caters to markets outside the United States, offering food products in all temperature states to both retail consumers and professional food service operators globally. Domestically, the Foodservice segment specializes in providing both proprietary and custom-engineered culinary offerings, such as prepared meals, entrees, sauces, and other specially manufactured gastronomic items, tailored for restaurants and institutional food providers throughout the United States. Conagra maintains an extensive portfolio of well-recognized brands, including Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, Angie's BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera. The company, which traces its origins back to 1861, was formerly known as ConAgra Foods, Inc. until its rebranding to Conagra Brands, Inc. in November 2016. Its main corporate offices are located in Chicago, Illinois.
Financial Metrics — CAG PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
1.03
Earnings Yield
-0.66%
ROE (TTM)
-0.5%
Revenue/Share (TTM)
$23.35
Dividend Yield
10.19%
Debt/Equity
0.80x
Frequently Asked Questions
What is the PE ratio of CAG?
The trailing twelve-month PE ratio of CAG reflects how much investors pay per dollar of Conagra Brands, Inc.'s earnings. This metric is most useful when compared to Packaged Foods peers and the company's own historical range.
Is CAG overvalued based on PE ratio?
CAG's PE of -152.0x combined with a PEG ratio of 1.03 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Packaged Foods, a DCF analysis may be more appropriate.
How do I value CAG stock using PE ratio?
To value Conagra Brands, Inc. using PE: (1) Compare the current PE (-152.0x) against the Packaged Foods median to assess relative pricing, (2) check the PEG ratio (1.03) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CAG?
CAG's PEG ratio is 1.03, calculated by dividing the PE ratio (-152.0x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CAG stock valuation?
PE ratio gives a quick relative read — how CAG is priced versus Packaged Foods peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CAG DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value CAG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.