The Hershey Company (HSY) Stock Valuation — PE Analysis
Food Confectioners · NYSE
Current Price
$163.77
PE Ratio (TTM)
22.2x
Intrinsic Value
$145.68
-12.4% margin of safety
COMPETITIVE MOAT
↑Milton Hershey's Trust Legacy
The enduring trust established by Milton Hershey in 1918 continues to control a significant portion of the company. This unique structure provides long-term stability and a unique governance framework.
↑Brand Recognition and Loyalty
Hershey's iconic brands like Hershey's Kisses and Reese's have cultivated deep consumer loyalty over decades. This strong brand equity allows for premium pricing and consistent demand.
↑Extensive Distribution Network
The company possesses a vast and established distribution network across the United States and internationally. This makes it difficult for new entrants to gain comparable market access.
INVESTMENT RISKS
↓Shifting Consumer Preferences
Changing consumer tastes towards healthier options or alternative snacks could negatively impact demand for traditional confectionery products. This requires ongoing adaptation.
↓Supply Chain Disruptions
Reliance on key agricultural commodities and complex global supply chains exposes Hershey to potential disruptions from weather, geopolitical events, or trade policies.
↓Regulatory and Health Scrutiny
Increased scrutiny on sugar content and ingredient sourcing by regulators and public health advocates could lead to product reformulation or marketing restrictions.
Base case
HSY base case PE valuation
A base case PE valuation for HSY estimates a fair value of about $145.68 per share, against a current price of $163.77. The model assumes 2.5% annual earnings growth, a 21.84x target PE multiple, and a 10% discount rate.
Intrinsic Value
$145.68
Margin of safety
-12.4%
Expected annual return
-2.3%
Base case assumptions: 2.5% annual earnings growth, 21.84x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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 HSY PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Hershey Company respond.
Open PE Calculator for HSYCompany Overview
The Hershey Company, operating with its various subsidiaries, serves as a key manufacturer and distributor of both sweet confections and general household pantry items. Its market reach extends across the United States and globally. The enterprise strategically divides its operations into three main business segments: North America Confectionery, North America Salty Snacks, and an International division. Its extensive product catalog features a wide array of offerings. This includes various chocolate and non-chocolate candies, as well as refreshing chewing gums and mints. Beyond traditional treats, Hershey also supplies pantry essentials such as baking ingredients, dessert toppings, a range of beverages, and sundae syrups. Furthermore, their snack collection encompasses diverse items like spreads, meat snacks, various bars and snack bites, popcorn, and protein bars. The company markets its broad product line under numerous iconic brand names. Its extensive brand portfolio includes household names such as Hershey's, Reese's, Kisses, Jolly Rancher, Kit Kat, Twizzlers, York, and Ice Breakers, alongside other popular confectionery brands like Almond Joy, Cadbury, Heath, Payday, Rolo, and Whoppers. The snack segment features well-known names like SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar, complemented by international offerings such as Pelon Pelo Rico, IO-IO, and Sofit. Hershey distributes its merchandise through a comprehensive network of channels. These include wholesale distributors, major grocery store chains, large-scale retailers, pharmacies, vending machine operators, warehouse clubs, convenience stores, discount stores, concession stands, and department stores. Established in 1894, The Hershey Company maintains its corporate headquarters in Hershey, Pennsylvania.
Financial Metrics — HSY PE Stock Valuation Data
PE Ratio (TTM)
22.2x
PEG Ratio
n/m
Earnings Yield
4.58%
ROE (TTM)
32.2%
Revenue/Share (TTM)
$61.22
Dividend Yield
3.50%
Debt/Equity
1.23x
Frequently Asked Questions
What is the PE ratio of HSY?
The trailing twelve-month PE ratio of HSY reflects how much investors pay per dollar of The Hershey Company's earnings. This metric is most useful when compared to Food Confectioners peers and the company's own historical range.
Is HSY overvalued based on PE ratio?
HSY's PE of 22.2x combined with a PEG ratio of -9.86 provides a growth-adjusted perspective. HSY 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 Food Confectioners, a DCF analysis may be more appropriate.
How do I value HSY stock using PE ratio?
To value The Hershey Company using PE: (1) Compare the current PE (22.2x) against the Food Confectioners median to assess relative pricing, (2) check the PEG ratio (-9.86) 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 HSY?
HSY's PEG ratio is -9.86, calculated by dividing the PE ratio (22.2x) by the expected earnings growth rate. Because HSY 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 HSY stock valuation?
PE ratio gives a quick relative read — how HSY is priced versus Food Confectioners peers. DCF provides an absolute value based on projected free cash flows. For HSY, with a strong ROE of 32.2%, 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 HSY 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 HSY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.