Is McCormick & Co., Inc. overvalued or undervalued?

As of 7 July 2025, McCormick & Co., Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 25, an EV to EBITDA of 18.93, and a Price to Book Value of 3.67. In comparison, peers such as Kellanova have a P/E of 26.43 and The Hershey Co. has a P/E of 26.49, indicating that McCormick is relatively more attractively priced within its industry.
Despite the fair valuation, McCormick's stock has underperformed significantly against the S&P 500, with a year-to-date return of -13.10% compared to the index's 12.22%. Over the past five years, the company has seen a decline of -30.25%, while the S&P 500 has gained 96.61%, highlighting a concerning trend that may warrant further investigation into the company's growth prospects.