This article analyzes J. M. Smucker (SJM) stock valuation, concluding it is undervalued by 56.4% based on a Discounted Cash Flow (DCF) model, with an estimated fair value of $265.72 per share against a current price of $115.95. However, it appears slightly overvalued when using the Price to Sales (P/S) ratio, trading at 1.39x compared to a fair ratio of 1.28x. The analysis also introduces “Narratives” as a tool for investors to customize valuation models based on their own assumptions.
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Is J. M. Smucker (SJM) Pricing Reflect Its DCF Upside After Recent Share Price Rebound
This article analyzes J. M. Smucker (SJM) stock valuation, concluding it is undervalued by 56.4% based on a Discounted Cash Flow (DCF) model, with an estimated fair value of $265.72 per share against a current price of $115.95. However, it appears slightly overvalued when using the Price to Sales (P/S) ratio, trading at 1.39x compared to a fair ratio of 1.28x. The analysis also introduces “Narratives” as a tool for investors to customize valuation models based on their own assumptions.