General Mills, Inc. (GIS) Stock Valuation — PE Analysis
Packaged Foods · NYSE
Current Price
$34.51
PE Ratio (TTM)
8.4x
Intrinsic Value
$29.48
-17.1% margin of safety
COMPETITIVE MOAT
↑Brand Strength and Loyalty
General Mills possesses a portfolio of well-established brands like Cheerios and Betty Crocker, fostering strong consumer recognition and loyalty. This allows for premium pricing and consistent demand.
↑Distribution Network Scale
The company benefits from an extensive and efficient distribution network across numerous markets. This scale provides a significant advantage in reaching consumers and securing shelf space.
↑Product Innovation Pipeline
General Mills demonstrates a capacity for product innovation and adaptation to evolving consumer preferences. This includes developing healthier options and expanding into new categories.
INVESTMENT RISKS
↓China Market Divestiture
The sale of Häagen-Dazs shops in China signals a strategic shift, potentially indicating challenges or a desire to focus resources elsewhere. This could impact future growth in that region.
↓Intense Competition
The packaged foods industry is highly competitive, with numerous players vying for market share. This can lead to price pressures and necessitate continuous marketing investment.
↓Changing Consumer Tastes
Shifting consumer preferences towards healthier, less processed foods pose a risk. General Mills must continually adapt its product offerings to meet these evolving demands.
Base case
GIS base case PE valuation
A base case PE valuation for GIS estimates a fair value of about $29.48 per share, against a current price of $34.51. The model assumes -4.8% annual earnings growth, a 8x target PE multiple, and a 10% discount rate.
Intrinsic Value
$29.48
Margin of safety
-17.1%
Expected annual return
-3.1%
Base case assumptions: -4.8% annual earnings growth, 8x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the GIS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for General Mills, Inc. respond.
Open PE Calculator for GISCompany Overview
General Mills, Inc. functions as a prominent global producer and vendor of well-known consumer food brands. The company structures its widespread operations into five main divisions: North American retail, convenience stores and foodservice providers, Europe and Australia, Asia and Latin America, and a dedicated pet segment. Their broad catalog of products features a diverse range of items for consumers. This includes breakfast cereals, chilled yogurts, various soups, and ready-to-prepare meal kits. The offering also extends to refrigerated and frozen dough items, baking and dessert mixes, flours for culinary use, frozen pizzas and pizza snacks, along with an assortment of snack bars, fruit snacks, savory and grain snacks, and ice cream. For health-conscious consumers, they provide nutrition bars and wellness beverages, in addition to organic frozen and shelf-stable vegetables. Beyond direct consumer sales, General Mills supplies both branded and unbranded food goods to the North American foodservice sector and commercial bakeries. Furthermore, they are a significant participant in the pet food industry, manufacturing a variety of dog and cat food products. The company markets its merchandise under an extensive collection of trademarks, such as: Annie's, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki, and Yoplait. General Mills distributes its products through a vast network, utilizing both direct sales and arrangements with brokers and distributors. Their reach encompasses a wide array of sales points, including traditional grocery stores, large-scale mass merchandisers, membership clubs, natural food retailers, online marketplaces, various commercial and non-commercial foodservice distributors and operators, restaurants, convenience stores, specialized pet stores, as well as drug, dollar, and discount retail chains. Complementing its extensive business, the corporation also oversees 466 leased and 392 franchised ice cream parlors. General Mills, Inc., established in 1866, maintains its corporate headquarters in Minneapolis, Minnesota.
Financial Metrics — GIS PE Stock Valuation Data
PE Ratio (TTM)
8.4x
PEG Ratio
n/m
Earnings Yield
11.85%
ROE (TTM)
23.7%
Revenue/Share (TTM)
$33.94
Dividend Yield
7.07%
Debt/Equity
1.49x
Frequently Asked Questions
What is the PE ratio of GIS?
The trailing twelve-month PE ratio of GIS reflects how much investors pay per dollar of General Mills, Inc.'s earnings. This metric is most useful when compared to Packaged Foods peers and the company's own historical range.
Is GIS overvalued based on PE ratio?
GIS's PE of 8.4x combined with a PEG ratio of -0.80 provides a growth-adjusted perspective. GIS has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 GIS stock using PE ratio?
To value General Mills, Inc. using PE: (1) Compare the current PE (8.4x) against the Packaged Foods median to assess relative pricing, (2) check the PEG ratio (-0.80) 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 GIS?
GIS's PEG ratio is -0.80, calculated by dividing the PE ratio (8.4x) by the expected earnings growth rate. Because GIS has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for GIS stock valuation?
PE ratio gives a quick relative read — how GIS is priced versus Packaged Foods peers. DCF provides an absolute value based on projected free cash flows. For GIS, with a strong ROE of 23.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 GIS 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 GIS 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.