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

As of 17 October 2025, the valuation grade for McCormick & Co., Inc. has moved from very expensive to fair. Based on the current analysis, McCormick appears to be fairly valued. Key valuation 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, Kellanova has a higher P/E of 26.43, while The Hershey Co. also shows a fair valuation with a P/E of 26.49.
Despite the fair valuation, McCormick's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -11.41% compared to the S&P 500's 13.30%. This underperformance over multiple periods, including a 5-year return of -32.25% against the S&P 500's 91.29%, suggests that while the stock may be fairly valued, it has not been able to keep pace with broader market trends.