McCormick's iconic brands like McCormick, Old Bay, and Frank's RedHot are deeply ingrained in consumer kitchens. This strong brand equity fosters repeat purchases and pricing power.

↑Distribution Network Strength

The company possesses an extensive and efficient global distribution network. This allows for broad product availability and strong relationships with retailers and foodservice partners.

↑Flavor Innovation Expertise

McCormick's long history and dedicated R&D in flavor science create a competitive advantage. They consistently develop new and appealing flavor profiles that resonate with evolving consumer tastes.

INVESTMENT RISKS

↓Commodity Price Volatility

Fluctuations in the cost of key ingredients like spices and herbs can impact profit margins. The company's ability to pass these costs onto consumers is not always guaranteed.

↓Intense Competition

The packaged food industry is highly competitive, with both large established players and smaller niche brands vying for market share. This can pressure pricing and marketing spend.

↓Changing Consumer Preferences

Shifts towards healthier eating, plant-based diets, or private label brands could reduce demand for some of McCormick's core offerings. Adapting to these trends requires continuous innovation.

Base case

MKC base case PE valuation

A base case PE valuation for MKC estimates a fair value of about $76.57 per share, against a current price of $48.95. The model assumes 9.0% annual earnings growth, a 8x target PE multiple, and a 10% discount rate.

Intrinsic Value

$76.57

Margin of safety

+36.1%

Expected annual return

+9.4%

Base case assumptions: 9.0% 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 MKC PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for McCormick & Company, Incorporated respond.

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Company Overview

McCormick & Company, Incorporated is a global leader in the manufacture, marketing, and distribution of a wide array of flavorful products, including spices, seasoning mixes, and condiments, to the food industry. Its operations are divided into two primary segments: Consumer and Flavor Solutions. The Consumer segment provides an extensive range of items such as spices, herbs, seasonings, sauces, and desserts. These are sold under numerous prominent brands across various regions: McCormick, French's, Frank's RedHot, Lawry's Cholula Hot Sauce, Gourmet Garden, Club House, and OLD BAY in the Americas; Ducros, Schwartz, Kamis, Drogheria & Alimentari, and Vahiné throughout Europe, the Middle East, and Africa (EMEA); McCormick and DaQiao in China; and McCormick, Aeroplane, and Gourmet Garden in Australia. In addition, it offers specialized regional and ethnic brands like Zatarain's, Stubb's, Thai Kitchen, and Simply Asia, and also produces goods for private labels. Its customer base encompasses a broad spectrum of retailers, including grocery stores, mass merchandisers, warehouse clubs, discount and drug stores, and e-commerce platforms. Distribution to these outlets occurs both directly and indirectly via distributors and wholesale foodservice providers. The Flavor Solutions segment caters to large-scale food manufacturers and the wider foodservice industry. It supplies essential ingredients such as seasoning blends, spices, herbs, condiments, coating systems, and complex flavor formulations. These products are delivered directly to clients or through a network of distributors. Founded in 1889, the company maintains its headquarters in Hunt Valley, Maryland.

Financial Metrics — MKC PE Stock Valuation Data

PE Ratio (TTM)

8.0x

PEG Ratio

0.07

Earnings Yield

12.49%

ROE (TTM)

27.3%

Revenue/Share (TTM)

$26.45

Dividend Yield

3.80%

Debt/Equity

0.70x

Frequently Asked Questions

What is the PE ratio of MKC?

The trailing twelve-month PE ratio of MKC reflects how much investors pay per dollar of McCormick & Company, Incorporated's earnings. This metric is most useful when compared to Packaged Foods peers and the company's own historical range.

Is MKC overvalued based on PE ratio?

MKC's PE of 8.0x combined with a PEG ratio of 0.07 provides a growth-adjusted perspective. A PEG below 1.0 suggests MKC may be undervalued relative to its 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 MKC stock using PE ratio?

To value McCormick & Company, Incorporated using PE: (1) Compare the current PE (8.0x) against the Packaged Foods median to assess relative pricing, (2) check the PEG ratio (0.07) 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 MKC?

MKC's PEG ratio is 0.07, calculated by dividing the PE ratio (8.0x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for MKC stock valuation?

PE ratio gives a quick relative read — how MKC is priced versus Packaged Foods peers. DCF provides an absolute value based on projected free cash flows. For MKC, with a strong ROE of 27.3%, 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 MKC 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

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P/E and DCF value MKC 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.