Campbell Soup Company (CPB) Fair Value & PE Analysis
Packaged Foods · NASDAQ
Current Price
$22.05
PE Ratio (TTM)
10.8x
Intrinsic Value
$22.13
+0.3% margin of safety
What Is Campbell Soup Company's Fair Value?
As of 2026-07-30, applying a 11.0x earnings multiple to Campbell Soup Company's (CPB) earnings per share of $2.04 yields a fair value estimate of $22.13 per share, versus a market price of $22.05.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $16.81 to $28.36. 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 · CPB intrinsic value (DCF view)
Is Campbell Soup Company (CPB) Overvalued?
At $22.05, CPB trades about 0.3% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Campbell's iconic brands like Campbell's Soup and Pepperidge Farm have strong consumer recognition. This fosters loyalty, making it harder for competitors to gain market share.
↑Distribution Network Scale
The company possesses an extensive and established distribution network across North America. This provides significant logistical advantages and shelf space access.
↑Product Portfolio Diversification
Campbell's diverse product offerings, spanning soups, snacks, and plant-based foods, reduce reliance on any single category. This mitigates risk from category-specific downturns.
INVESTMENT RISKS
↓Margin Erosion Concerns
Recent analysis highlights ongoing and accelerating deterioration in gross and operating margins. This suggests significant cost pressures or pricing challenges impacting profitability.
↓S&P 500 Index Fund Selling
Potential removal from the S&P 500 could trigger indiscriminate selling by index funds. This may create temporary but significant price volatility for the stock.
↓Commodity Price Volatility
The company's profitability is susceptible to fluctuations in the cost of key ingredients and packaging materials. Unfavorable price movements can directly impact margins.
Base case
CPB base case PE valuation
Intrinsic Value
$22.13
Margin of safety
+0.3%
Expected annual return
+0.1%
Base case assumptions: 0.5% annual earnings growth, 11x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 CPB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Campbell Soup Company respond.
Open PE Calculator for CPBCompany Overview
Campbell Soup Company (CPB) is a leading international producer and marketer of a wide variety of food and beverage products. The enterprise conducts its business through two main operational divisions: Meals & Beverages and Snacks. The Meals & Beverages segment serves both retail and food service industries throughout the United States and Canada. Its extensive product range includes classic Campbell's condensed and ready-to-enjoy soups; Swanson brand broths and stocks; Pacific Foods' line of broths, soups, and non-dairy beverages; Prego pasta sauces; Pace brand Mexican sauces; Campbell's gravies, pasta dishes, beans, and dinner sauces; Swanson canned poultry; Plum organic baby food and snacks; V8 juices and drinks; and Campbell's tomato juice. The Snacks division primarily targets the retail sector, with a significant presence in Latin America. This segment offers a diverse array of treats, such as Pepperidge Farm's selection of cookies, crackers, fresh bakery items, and frozen goods, including Milano cookies and Goldfish crackers. Other notable brands within this category are Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and numerous other snacking options. Campbell Soup Company employs a comprehensive distribution strategy, selling its merchandise across an extensive network that encompasses major retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores. Additionally, products are available via e-commerce platforms, various other retail, commercial, and non-commercial establishments, and a system of independent contractor distributors. Established in 1869, the company's corporate headquarters are situated in Camden, New Jersey.
Financial Metrics — CPB PE Stock Valuation Data
PE Ratio (TTM)
10.8x
PEG Ratio
0.31
Earnings Yield
9.26%
ROE (TTM)
15.3%
Revenue/Share (TTM)
$33.32
Dividend Yield
7.08%
Debt/Equity
1.74x
Frequently Asked Questions
What is the PE ratio of CPB?
The trailing twelve-month PE ratio of CPB reflects how much investors pay per dollar of Campbell Soup Company's earnings. This metric is most useful when compared to Packaged Foods peers and the company's own historical range.
Is CPB overvalued based on PE ratio?
CPB's PE of 10.8x combined with a PEG ratio of 0.31 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 CPB stock using PE ratio?
To value Campbell Soup Company using PE: (1) Compare the current PE (10.8x) against the Packaged Foods median to assess relative pricing, (2) check the PEG ratio (0.31) 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 CPB?
CPB's PEG ratio is 0.31, calculated by dividing the PE ratio (10.8x) 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 CPB stock valuation?
PE ratio gives a quick relative read — how CPB is priced versus Packaged Foods peers. DCF provides an absolute value based on projected free cash flows. For CPB, with a strong ROE of 15.3%, 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 CPB 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 CPB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.