Mondelez International, Inc. (MDLZ) Stock Valuation — PE Analysis
Food Confectioners · NASDAQ
Current Price
$64.99
PE Ratio (TTM)
23.9x
Intrinsic Value
$72.17
+10.0% margin of safety
COMPETITIVE MOAT
↑Global Brand Recognition & Loyalty
Iconic brands like Oreo, Cadbury, and Ritz command strong consumer loyalty. This allows for premium pricing and consistent demand across diverse markets.
↑Extensive Distribution Network
MDLZ possesses a vast global distribution system reaching millions of retail outlets. This scale makes it difficult for smaller competitors to match market penetration.
↑Economies of Scale in Production
Large-scale manufacturing operations lead to cost efficiencies in raw material sourcing and production. This cost advantage is hard for rivals to replicate.
INVESTMENT RISKS
↓Shifting Consumer Preferences
Consumers are increasingly health-conscious and seeking alternatives to traditional confectionery. This trend could erode demand for core products.
↓Input Cost Volatility
Fluctuations in commodity prices for sugar, cocoa, and dairy can significantly impact profitability. Managing these costs is a constant challenge.
↓Intense Competition & Private Labels
The snack and confectionery market is highly competitive, with strong brands and growing private label offerings. This limits pricing power.
Base case
MDLZ base case PE valuation
At a current price of $64.99, the base case PE valuation puts MDLZ fair value near $72.17 per share. That figure assumes 7.8% yearly earnings growth, a target PE multiple of 24x, and a 10% discount rate.
Intrinsic Value
$72.17
Margin of safety
+10.0%
Expected annual return
+2.1%
Base case assumptions: 7.8% annual earnings growth, 24x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 MDLZ PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Mondelez International, Inc. respond.
Open PE Calculator for MDLZCompany Overview
Mondelez International, Inc. operates as a prominent global entity in the snack and beverage sector, focusing on the production, promotion, and distribution of a wide array of food items. Its extensive reach spans multiple continents, including North America, Latin America, Asia, the Middle East, Africa, and Europe. The company's diverse product portfolio encompasses biscuits (such as cookies, crackers, and various savory snacks), chocolates, chewing gums, candies, as well as selection of cheese and general grocery products, and powdered beverage mixes. Among its well-recognized brands are Cadbury, Milka, and Toblerone chocolates; Oreo, belVita, and LU biscuits; Halls candies; Trident chewing gum; and Tang powdered beverages. Mondelez distributes its offerings through a comprehensive network of retail outlets, catering to a broad spectrum of clients including large supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, convenience stores, petrol stations, pharmacies, discount stores, and other food retailers. This complex distribution system leverages direct store delivery, proprietary and external warehousing solutions, third-party distributors, independent sales agents, and digital e-commerce platforms. Established in 2000, the company was initially known as Kraft Foods Inc. before officially changing its name to Mondelez International, Inc. in October 2012. Its corporate headquarters are situated in Chicago, Illinois.
Financial Metrics — MDLZ PE Stock Valuation Data
PE Ratio (TTM)
23.9x
PEG Ratio
n/m
Earnings Yield
4.20%
ROE (TTM)
13.5%
Revenue/Share (TTM)
$30.78
Dividend Yield
3.08%
Debt/Equity
0.83x
Frequently Asked Questions
What is the PE ratio of MDLZ?
The trailing twelve-month PE ratio of MDLZ reflects how much investors pay per dollar of Mondelez International, Inc.'s earnings. This metric is most useful when compared to Food Confectioners peers and the company's own historical range.
Is MDLZ overvalued based on PE ratio?
MDLZ's PE of 23.9x combined with a PEG ratio of -16.49 provides a growth-adjusted perspective. MDLZ 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 MDLZ stock using PE ratio?
To value Mondelez International, Inc. using PE: (1) Compare the current PE (23.9x) against the Food Confectioners median to assess relative pricing, (2) check the PEG ratio (-16.49) 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 MDLZ?
MDLZ's PEG ratio is -16.49, calculated by dividing the PE ratio (23.9x) by the expected earnings growth rate. Because MDLZ 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 MDLZ stock valuation?
PE ratio gives a quick relative read — how MDLZ is priced versus Food Confectioners 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 MDLZ 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 MDLZ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.