While the broader stock market has raced to new highs lately, Hershey (NYSE: HSY) has left investors with a bitter taste in their mouths. After hitting a peak near $260 early last year, shares of the chocolate and snack giant have melted down nearly 35% to around $170. But just as a Reese's Peanut Butter Cup is more than its chocolate shell, there's more to this story than the stock price suggests. Let's run the stock through The Value Meter to find out whether this pullback offers a sweet opportunity. First, let's look at Hershey's enterprise value-to-net asset value (EV/NAV) ratio, which tells us how much investors are theoretically paying for the company's assets. With an EV/NAV of 9.7, Hershey is over 50% more expensive than the average company. Though that might raise eyebrows, focusing solely on this metric could cause us to miss the potential richness inside. So, is Hershey stock a tasty treat at its current price... or just a mangled, melted mess? |
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