The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2023-12-01), General Mills's share price is
$63.66.
General Mills's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Aug. 2023 was $4.10. Therefore, General Mills's PE Ratio for today is 15.53.
Good Sign:
General Mills Inc stock PE Ratio (=15.27) is close to 3-year low of 14
The historical rank and industry rank for General Mills's PE Ratio or its related term are showing as below:
GIS'
s PE Ratio Range Over the Past 10 Years
Min: 10.9 Med: 18.25 Max: 30.08
Current: 15.53
During the past 13 years, the highest PE Ratio of General Mills was 30.08. The lowest was 10.90. And the median was 18.25.
GIS's PE Ratio is ranked better than 59.19% of 1316
companies
in the Consumer Packaged Goods industry
Industry Median: 18.72
vs GIS: 15.53
As of today (2023-12-01), General Mills's share price is $63.66.
General Mills's EPS without NRI for the trailing twelve months (TTM) ended in Aug. 2023 was $4.28. Therefore, General Mills's PE Ratio without NRI for today is 14.87.
During the past 13 years, General Mills's highestPE Ratio without NRI was 24.82. The lowest was 11.90. And the median was 18.07.
General Mills's EPS without NRI for the
three
months ended in Aug. 2023 was $1.09.
Its EPS without NRI for the trailing twelve months (TTM) ended in Aug. 2023 was $4.28.
During the past 12 months, General Mills's average EPS without NRIGrowth Rate was 5.40% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 3.00% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 6.50% per year.
During the past 10 years, the average EPS without NRIGrowth Rate was 4.80% per year.
During the past 13 years, General Mills's highest 3-Year average EPS without NRI Growth Rate was 22.90% per year. The lowest was -7.90% per year. And the median was 7.40% per year.
General Mills's EPS (Basic) for the
three
months ended in Aug. 2023 was $1.15.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Aug. 2023 was $4.14.
General Mills PE Ratio Historical Data
The historical data trend for General Mills's PE Ratio 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.
General Mills Annual Data
Trend
May14
May15
May16
May17
May18
May19
May20
May21
May22
May23
PE Ratio
17.05
17.71
16.63
15.80
19.53
General Mills Quarterly Data
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
PE Ratio
16.17
17.81
17.17
19.53
16.50
Competitive Comparison
For the Packaged Foods subindustry, General Mills's PE Ratio, along with its competitors' market caps and PE Ratio 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.
General Mills PE Ratio Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, General Mills's PE Ratio distribution charts can be found below:
* The bar in red indicates where General Mills's PE Ratio falls into.
General Mills PE Ratio Calculation
The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
General Mills's PE Ratio for today is calculated as
General Mills's Share Price of today is $63.66.
General Mills's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Aug. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.10.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
General Mills (NYSE:GIS) PE Ratio Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
General Mills PE Ratio Related Terms
Thank you for viewing the detailed overview of General Mills's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
General Mills is a global packaged food company that produces snacks, cereal, convenient meals, yogurt, dough, baking mixes and ingredients, pet food, and super-premium ice cream. Its largest brands are Nature Valley, Cheerios, Old El Paso, Yoplait, Pillsbury, Betty Crocker, Blue Buffalo, and Haagen-Dazs. In fiscal 2023, 81% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America. While most of General Mills' products are sold through retail stores to consumers, the company also sells products into the foodservice channel and the commercial baking industry.
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