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The Hershey Co (The Hershey Co) Cyclically Adjusted Price-to-FCF : 28.08 (As of Apr. 28, 2024)


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What is The Hershey Co Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), The Hershey Co's current share price is $186.16. The Hershey Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $6.63. The Hershey Co's Cyclically Adjusted Price-to-FCF for today is 28.08.

The historical rank and industry rank for The Hershey Co's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

HSY' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 26.34   Med: 34.78   Max: 42.89
Current: 28.09

During the past years, The Hershey Co's highest Cyclically Adjusted Price-to-FCF was 42.89. The lowest was 26.34. And the median was 34.78.

HSY's Cyclically Adjusted Price-to-FCF is ranked worse than
58.97% of 697 companies
in the Consumer Packaged Goods industry
Industry Median: 23.47 vs HSY: 28.09

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

The Hershey Co's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $2.606. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $6.63 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Hershey Co Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Hershey Co's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Hershey Co Cyclically Adjusted Price-to-FCF Chart

The Hershey Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.68 34.49 35.96 37.67 28.13

The Hershey Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.67 39.63 38.05 30.10 28.13

Competitive Comparison of The Hershey Co's Cyclically Adjusted Price-to-FCF

For the Confectioners subindustry, The Hershey Co's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Hershey Co's Cyclically Adjusted Price-to-FCF Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where The Hershey Co's Cyclically Adjusted Price-to-FCF falls into.



The Hershey Co Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

The Hershey Co's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=186.16/6.63
=28.08

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Hershey Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, The Hershey Co's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=2.606/129.4194*129.4194
=2.606

Current CPI (Dec. 2023) = 129.4194.

The Hershey Co Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.547 99.695 0.710
201406 -0.451 100.560 -0.580
201409 0.591 100.428 0.762
201412 1.425 99.070 1.862
201503 0.882 99.621 1.146
201506 0.626 100.684 0.805
201509 0.106 100.392 0.137
201512 2.480 99.792 3.216
201603 1.048 100.470 1.350
201606 0.170 101.688 0.216
201609 0.083 101.861 0.105
201612 2.157 101.863 2.741
201703 0.938 102.862 1.180
201706 0.232 103.349 0.291
201709 1.059 104.136 1.316
201712 2.422 104.011 3.014
201803 1.377 105.290 1.693
201806 0.832 106.317 1.013
201809 0.877 106.507 1.066
201812 2.937 105.998 3.586
201903 1.128 107.251 1.361
201906 1.261 108.070 1.510
201909 1.201 108.329 1.435
201912 3.275 108.420 3.909
202003 0.699 108.902 0.831
202006 1.346 108.767 1.602
202009 1.793 109.815 2.113
202012 2.172 109.897 2.558
202103 2.374 111.754 2.749
202106 1.420 114.631 1.603
202109 1.283 115.734 1.435
202112 2.558 117.630 2.814
202203 2.487 121.301 2.653
202206 1.731 125.017 1.792
202209 1.587 125.227 1.640
202212 2.948 125.222 3.047
202303 2.814 127.348 2.860
202306 0.681 128.729 0.685
202309 1.448 129.860 1.443
202312 2.606 129.419 2.606

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


The Hershey Co  (NYSE:HSY) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


The Hershey Co Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of The Hershey Co's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


The Hershey Co (The Hershey Co) Business Description

Address
19 East Chocolate Avenue, Hershey, PA, USA, 17033
Hershey is a leading confectionery manufacturer in the U.S. (around a $25 billion market), controlling around 45% of the domestic chocolate space (per IRI, as cited by Hershey). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the U.S., including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix, Pirate Brands, and Dot's Pretzels over the past few years.
Executives
Charles R Raup officer: President, U.S. 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Steven E Voskuil officer: SVP, Chief Financial Officer 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Deepak Bhatia officer: SVP, Chief Technology Officer THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Pamela M Arway director 601 HAWAII ST., EL SEGUNDO CA 90245
Michele Buck officer: SVP, Pres. US Snacks THE HERSHEY COMPANY, 100 CRYSTAL A DRIVE, HERSHEY PA 17033
Hershey Trust Co Trustee In Trust For Milton Hershey School 10 percent owner 100 MANSION ROAD EAST, P O BOX 445, HERSHEY PA 17033
Jason Reiman officer: SVP Chief Supply Chain Officer THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Maria T Kraus director THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Rohit Grover officer: President, International THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Jennifer Mccalman officer: Chief Accounting Officer 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Robert Malcolm director C/O LOGITECH INTERNATIONAL S.A., RUE DU SABLON 2-4, MORGES V8 1110
Anthony J. Palmer director P.O. BOX 619100, DALLAS TX 75261-9100
Hershey Trust Co 10 percent owner 100 MANSION ROAD EAST, HERSHEY PA 17033
Christopher M Scalia officer: SVP, CHRO 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Kristen J Riggs officer: SVP, Chief Growth Officer 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033