Author(s)

Minzhu Zhao

Corresponding Author

Minzhu Zhao

ABSTRACT

Multiple valuations are the main tool to value the stock prices of a company, examining the financial situation and stock price between the company and its main competitors. During the financial ratios analyzing the financial statement of a company, the Price-Earnings (P/E) ratio and EV/EBITDA are two convincing ratios used by analysts to illustrate the stock prices of a company. In this essay, Tyson Foods’ stock prices for the past three years will be analyzed if they are over-valued, under-valued, or fair by using the P/E ratio and EV/EBITDA these two main multiple valuation tools with the data from its main competitors- Hormel Foods, Pilgrim’s Pride, WH group -Wanzhou International Co., Ltd.- ("Wanzhou International"). The current strategy and recent financial performance will also be considered as significant factors affecting the value of a company. The research leads to the result that Tyson Foods is considerably competitive among these competitors. Finally, the conclusion could be made that the stock prices of Tyson Foods are fair over 2021, 2020, and 2019 and the enterprise values for 2020 and 2019 were fair while the enterprise value for 2021 is over-estimated.

KEYWORDS

Price-Earnings (P/E) ratio, EV/EBITDA, multiple valuations, stock price, Tyson Foods, Hormel Foods, Pilgrim’s Pride, WH group -Wanzhou International Co, Ltd- ("Wanzhou International")