The J. M. Smucker Company (SJM) Fair Value & PE Analysis
Packaged Foods · NYSE
Current Price
$121.14
PE Ratio (TTM)
56.3x
Intrinsic Value
$79.54
-52.3% margin of safety
What Is The J. M. Smucker Company's Fair Value?
As of 2026-09-11, applying a 50.0x earnings multiple to The J. M. Smucker Company's (SJM) earnings per share of $2.15 yields a fair value estimate of $79.54 per share, versus a market price of $121.14.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $68.47 to $92.04. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · SJM intrinsic value (DCF view)
Is The J. M. Smucker Company (SJM) Overvalued?
At $121.14, SJM trades above its PE-based fair value estimate, meaning the market pays a premium over the applied earnings multiple. By this model the stock looks expensive unless earnings grow into the price.
COMPETITIVE MOAT
INVESTMENT RISKS
Base case
SJM base case PE valuation
Intrinsic Value
$79.54
Margin of safety
-52.3%
Expected annual return
-8.1%
Base case assumptions: 1.3% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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 SJM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The J. M. Smucker Company respond.
Open PE Calculator for SJMCompany Overview
The J. M. Smucker Company is an international enterprise specializing in the production and marketing of a diverse portfolio of branded food and beverage items. Its operations are organized into three principal U.S. retail divisions: Pet Foods, Coffee, and Consumer Foods. The company's extensive product offerings encompass various coffee options, including roast, ground, single-serve, and premium blends; a wide selection of spreads such as peanut butter and fruit preserves; cooking staples like shortening and oils; convenient frozen sandwiches and snacks; and a full range of pet food and treats. Additionally, Smucker provides hot beverages, portion-controlled items, and flour products for the foodservice sector, alongside frozen handheld meals, juices, beverages, and baking ingredients. These items are marketed under numerous recognizable brands, including Meow Mix, 9Lives, Kibbles 'n Bits, Milk-Bone, Pup-Peroni, Rachael Ray Nutrish, Nature's Recipe, Folgers, Café Bustelo, Dunkin', 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company distributes its products through a vast network, utilizing both direct sales and brokers to reach grocery stores, club stores, discount and dollar retailers, online platforms, pet specialty stores, natural food outlets and their distributors, pharmacies, military commissaries, and large mass merchandisers. Founded in 1897, The J. M. Smucker Company is headquartered in Orrville, Ohio.
Financial Metrics — SJM PE Stock Valuation Data
PE Ratio (TTM)
56.3x
PEG Ratio
0.08
Earnings Yield
1.77%
ROE (TTM)
4.1%
Revenue/Share (TTM)
$85.74
Dividend Yield
3.65%
Debt/Equity
1.20x
Frequently Asked Questions
What is the PE ratio of SJM?
The trailing twelve-month PE ratio of SJM reflects how much investors pay per dollar of The J. M. Smucker Company's earnings. This metric is most useful when compared to Packaged Foods peers and the company's own historical range.
Is SJM overvalued based on PE ratio?
SJM's PE of 56.3x combined with a PEG ratio of 0.08 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to 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 SJM stock using PE ratio?
To value The J. M. Smucker Company using PE: (1) Compare the current PE (56.3x) against the Packaged Foods median to assess relative pricing, (2) check the PEG ratio (0.08) 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 SJM?
SJM's PEG ratio is 0.08, calculated by dividing the PE ratio (56.3x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SJM stock valuation?
PE ratio gives a quick relative read — how SJM 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 SJM 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 SJM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.